Approximately how much is $25,000 to be received a year from now worth today at an interest rate of 11 percent?

Question

Quizplus · Accepted Answer

The present value of $25,000 to be received a year from now at an interest rate of 11 percent can be calculated using the formula for present value: PV = FV / (1 + r)^n, where PV is the present value, FV is the future value ($25,000), r is the interest rate (11% or 0.11), and n is the number of periods (1 year). Plugging in the values, we get PV = $25,000 / (1 + 0.11)^1 = $25,000 / 1.11 = $22,522.52, which rounds to $22,523.

Approximately How Much Is $25,000 to Be Received a Year