Approximately how much is $25,000 to be received a year from now worth today at an interest rate of 6 percent?

Name: Approximately how much is $25,000 to be received a year from now worth today at an interest rate of 6 percent?
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Quizplus · Accepted Answer

We can use the formula for present value of a future payment: Present Value = Future Value / (1 + i)^n where i is the interest rate and n is the number of periods. Plugging in the values, we get: Present Value = $25,000 / (1 + 0.06)^1 = $23,585. Therefore, the best choice is C.

Approximately How Much Is $25,000 to Be Received a Year