What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)

Name: What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)
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Question

Quizplus · Accepted Answer

To find the present value (PV) of $60,000 with a 9% rate of return, use the formula: PV = FV / (1 + r). Here, FV = $60,000 and r = 0.09. So, PV = $60,000 / 1.09 = $55,045.88.

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