If the single amount of $5,000 is to be received in 3 years and discounted at 6%, its present value is
A) $4,198.10.
B) $4,717.30.
C) $4,450.00.
D) $4,395.45.

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 discount rate, and n is the number of periods. For $5,000 at 6% for 3 years, PV = 5000 / (1 + 0.06)^3 = $4,198.10.

If the Single Amount of $5,000 Is to Be Received