The present value of $100,000 two years in the future at a 3 percent interest rate is approximately

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Quizplus · Accepted Answer

The present value of a future sum of money is calculated using the formula:PV = FV / (1 + r)^nwhere:PV is the present valueFV is the future valuer is the interest raten is the number of yearsIn this case, the future value is $100,000, the interest rate is 3%, and the number of years is 2. Plugging these values into the formula, we get:PV = 100,000 / (1 + 0.03)^2PV = 100,000 / 1.0609PV = $94,260Therefore, the present value of $100,000 two years in the future at a 3 percent interest rate is approximately $94,260.

The Present Value of $100,000 Two Years in the Future