Find the present value for the given future amount. Round to the nearest cent.
-A = $4000, 12 years r = 4% compounded semiannually

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = A / (1 + r/n)^(nt), where A is the future amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Substituting the given values, PV = 4000 / (1 + 0.04/2)^(2*12) = $2486.89.

Find the Present Value for the Given Future Amount