At an interest rate of 6 percent, what would be the present value of receiving $22,000 twelve years from now?

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($22,000), r is the annual interest rate (6% or 0.06), and n is the number of years (12). Plugging these values in gives PV = $22,000 / (1 + 0.06)^12, which calculates to approximately $10,934.

At an Interest Rate of 6 Percent, What Would Be