Find the present value for the given future amount. Round to the nearest cent.
-A = $12,400, 3 years r = 4% compounded annually

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = A / (1 + r)^n, where A is the future amount, r is the annual interest rate (as a decimal), and n is the number of years. Plugging in the given values: PV = $12,400 / (1 + 0.04)^3 ≈ $11,023.55.

Find the Present Value for the Given Future Amount