If you are able to earn a 15% rate of return, what amount would you need to invest to have $15,000 one year from now?

Question

Quizplus · Accepted Answer

We can use the formula: FV = PV x (1 + r), where FV is the future value, PV is the present value, and r is the rate of return expressed as a decimal. We plug in the values we know and solve for PV: 15,000 = PV x (1 + 0.15). Simplifying this equation gives us PV = 15,000 / 1.15 = $13,043.48, which is closest to answer choice D of $13,044.

If You Are Able to Earn a 15% Rate of Return