If $1,000 is invested at 3 percent per year for 10 years, the investment grows to $1,343.92. This means that the present value of $1,343.92 at an interest rate of 3 percent 10 years from now is

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Quizplus · Accepted Answer

The present value of an amount of money in the future is the amount that, if invested today at the given interest rate, would grow to that future amount. In this case, $1,000 invested at 3 percent per year grows to $1,343.92 in 10 years, so the present value of $1,343.92 at a 3 percent interest rate 10 years from now is $1,000.

If $1,000 Is Invested at 3 Percent Per Year for 10