Question

Suppose that today an asset is worth $169.00, but that next year you expect the price of this asset to be exactly the same. In present value, how much is it worth to you to wait and buy the asset next year when the interest rate is 6.00% this year?

Answer 1

$PV=\frac{FV}{(1+i)^n}$

$=\frac{169}{(1+0.06)^1}$

=$159.43