At an annual interest rate of 7%,the present value of $5000 received in five years is closest to:
A)$3565.
B)$6750.
C)$7015.
D)$7035.

Name: At an annual interest rate of 7%,the present value of $5000 received in five years is closest to: A)$3565. B)$6750. C)$7015. D)$7035.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of years. For $5000 at 7% over 5 years, PV = 5000 / (1 + 0.07)^5 ≈ $3565.

At an Annual Interest Rate of 7%,the Present Value of $5000