The present value of $300,000 received in 12 years at 4 percent interest is approximately:
A)$312,451.
B)$187,379.
C)$427,126.
D)None of these are true.

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 interest rate, and n is the number of years. Plugging in the values: PV = $300,000 / (1 + 0.04)^12 ≈ $187,379.

The Present Value of $300,000 Received in 12 Years at 4