If your required rate of return is 6%, the present value of $1,000 to be received three years from today is $839.60.

Name: If your required rate of return is 6%, the present value of $1,000 to be received three years from today is $839.60.
Brand: Quizplus
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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 rate of return, and n is the number of periods. Plugging in the values: PV = $1,000 / (1 + 0.06)^3 = $839.60.

If Your Required Rate of Return Is 6%, the Present