{
  "address": "3328c20034229a4594ee07438eb2b123",
  "category": "other",
  "question": "What is the present value of $10000 to be received in 10 years, discounted at 5% per year?",
  "answer": "$6,139.13",
  "askedBy": {
    "kind": "guest",
    "display": "method deck",
    "stamped": false,
    "id": null
  },
  "answeredBy": "method",
  "madeAt": "2026-09-30T22:39:30.722Z",
  "validUntil": null,
  "validityClass": "forever",
  "sources": [
    {
      "label": "Principles of Corporate Finance",
      "url": null
    }
  ],
  "supersedes": null,
  "supersededBy": null,
  "isSeed": false,
  "seedSource": null,
  "seedAttribution": null,
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  "publishedAt": null,
  "unpublishedAt": null,
  "voteCount": 0,
  "queuedForSubstrate": false,
  "answerMethod": "method",
  "unsourced": false,
  "source": {
    "kind": "edition_page",
    "value": "Brealey, Myers, Allen, Principles of Corporate Finance, 13th ed., Chapter 2, section 2-1 (Present Values)",
    "retrieved_utc": "2026-09-30T19:31:29Z"
  },
  "qsha256": "ffb5cf5d4f2f0f89535ab973652d99a962d9c881f2f9c152ad1898d82609aef9",
  "runOne": null,
  "cardContractVersion": "card_contract/1",
  "deck_id": "method-deck",
  "deck_title": "Method Deck",
  "method": {
    "name": "Present value of a lump sum",
    "version": "1",
    "source_url_or_file": "methods/present-value-of-lump-sum.cjs",
    "sha256_of_method_file": "adf9339a91636ce36baa08d3eb2fa04d720166314898660bfb10e4febe33f555"
  },
  "receipt": {
    "inSubstrate": false,
    "local": true,
    "modelCallsAtMint": 0,
    "tokensAtMint": 0
  },
  "method_deck": {
    "inputs": [
      {
        "name": "future_value",
        "type": "number",
        "unit": "currency units",
        "required": true,
        "description": "Amount to be received in the future",
        "min": 0
      },
      {
        "name": "annual_discount_rate_percent",
        "type": "number",
        "unit": "%",
        "required": true,
        "description": "Annual discount rate",
        "min": 0
      },
      {
        "name": "years",
        "type": "number",
        "unit": "years",
        "required": true,
        "description": "Number of years until the amount is received",
        "min": 0
      }
    ],
    "outputs": [
      {
        "name": "present_value",
        "unit": "currency units",
        "description": "Value of the future amount in today's terms"
      }
    ],
    "steps": [
      "Convert the annual rate to a decimal: r = annual_discount_rate_percent / 100.",
      "present_value = future_value / (1 + r) ^ years.",
      "Round present_value to 2 decimals (money to cents)."
    ],
    "constants": [],
    "examples": [
      {
        "name": "worked example",
        "inputs": {
          "future_value": 10000,
          "annual_discount_rate_percent": 5,
          "years": 10
        },
        "expected": {
          "answer": "$6,139.13"
        },
        "check": "hand computation: PV = 10000 / (1.05)^10 = 10000/1.628894... = 6139.1325..., rounds to 6139.13"
      },
      {
        "name": "test vector: short horizon",
        "inputs": {
          "future_value": 1000,
          "annual_discount_rate_percent": 8,
          "years": 1
        },
        "expected": {
          "answer": "$925.93"
        },
        "check": "hand computation: PV = 1000 / 1.08 = 925.9259..., rounds to 925.93"
      }
    ],
    "disclaimer": null,
    "deck_category": "finance"
  },
  "status": "minted",
  "kind": "method",
  "provenanceClass": "own_question",
  "provenance": {
    "schema": "card_provenance/2.0.0",
    "chain": [
      {
        "source": {
          "kind": "edition_page",
          "value": "Brealey, Myers, Allen, Principles of Corporate Finance, 13th ed., Chapter 2, section 2-1 (Present Values)",
          "retrieved_utc": "2026-09-30T19:31:29Z"
        },
        "sha256": "8ed02b0b8ea62a8b488cf8ba1c3fdeaaf97003e8bf419d4c13b5bd9e16982ec6",
        "supersedes": null,
        "added_utc": "2026-09-30T22:39:30.722Z",
        "added_by": "method:Present value of a lump sum",
        "why": "the method that computed this answer",
        "check": null,
        "status_label": "pending",
        "signature": null
      }
    ]
  }
}