At an interest rate of 6%,how much will need to be invested today to have $10,000 in 5 years?
A) $5,000
B) $7,473
C) $10,000
D) $13,382

Question

Quizplus · Accepted Answer

The formula to calculate the present value of future cash flows is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods. Substituting the given values, we get PV = 10,000 / (1 + 0.06)^5 = 7,473. Thus, the best choice is B.

At an Interest Rate of 6%,how Much Will Need to Be