At an interest rate of 3%, what is the present value of $1000 to be received five years from now?
A)$863
B)$1667
C)$1159
D)$850

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($1000), r is the annual interest rate (3% or 0.03), and n is the number of years (5). Plugging in the values, PV = $1000 / (1 + 0.03)^5 = $863 approximately.

At an Interest Rate of 3%, What Is the Present