Evaluate $\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right)^{4}}$
A) $25,588.46
B) $19,927.38
C) $19,072.38
D) $24,855.01
E) $24,425.08

Question

Quizplus · Accepted Answer

The correct answer is found by evaluating the given expression. The expression represents the present value of $25,000, discounted at a monthly interest rate of 0.07/12 for 4 months. The calculation is as follows: $ \$ 25,000 / \left(1+\frac{0.07}{12}\right)^{4}$. When calculated, this gives approximately $24,425.08, which matches option E.

Evaluate $25,000(1+0.0712)4\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right)^{4}}(1+120.07​)4$25,000​ A) $25,588

Evaluate $\frac{\$ 25,000}{\left(1+\frac{0.07}{12}\right)^{4}}$ A) $25,588