Seth's grandmother gave him a $50 savings bond for his birthday.The bond pays $50 at maturity,which is in 5 years.If the interest rate is 5 per cent,the bond has a present value of $43.19.

Question

Quizplus · Accepted Answer

The present value of the bond can be calculated using the formula 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 years. Plugging in the given values, we get PV = 50 / (1 + 0.05)^5 = $38.55, not $43.19. Therefore, the statement is false.

Seth's Grandmother Gave Him a $50 Savings Bond for His