What is the present value of 100,000 TL received in 10 years if the interest rate is 12% and compounded quarterly?

What is the present value of 100,000 TL received in 10 years if the interest rate is 12% and compounded quarterly?

Answer: 30,655.68

Working

Formula for calculating present value of future cash flow when interest rate is compounded quarterly is as follows;

Present value         = Cash flows ÷ (1 + r/4)^{4 * N}

                                                = 100,000 ÷ (1 + (0.12/4))^4*10

                                            = 100,000 ÷ (1.03)⁴⁰

                                    = 30,655.68

Where,

Cash flow = 100,000

r = Interest rate = 12%

N = number of years = 10