Find the present value for the given future amount. Round to the nearest cent.
-A = $4200, 9 years r = 8% compounded annually

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula: PV = A / (1 + r)^n, where A is the future amount, r is the annual interest rate, and n is the number of years. Substituting the given values: PV = 4200 / (1 + 0.08)^9 = 4200 / 1.999004 = 2101.05 (rounded to the nearest cent).

Find the Present Value for the Given Future Amount