The present discounted value of $60,000 to be received at the end of three years when the interest rate is 10 percent is closest to
A)$45,079.
B)$49,587.
C)$60,000.
D)$79,860.

Name: The present discounted value of $60,000 to be received at the end of three years when the interest rate is 10 percent is closest to A)$45,079. B)$49,587. C)$60,000. D)$79,860.
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Question

Quizplus · Accepted Answer

The present value is calculated using the formula PV = FV / (1 + r)^n. Here, FV = $60,000, r = 0.10, and n = 3. PV = $60,000 / (1.10)^3 = $45,079.

The Present Discounted Value of $60,000 to Be Received at the End