Assuming an interest rate of 5%, what would the present value be of $4 million to be received in 4 years?

Name: Assuming an interest rate of 5%, what would the present value be of $4 million to be received in 4 years?
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Question

Quizplus · Accepted Answer

Using the formula for present value: PV = FV/ (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years. Substituting the given values, we get PV= $4,000,000 / (1 + 0.05)^4 = $3,290,809.89. Therefore, the best choice is C

Assuming an Interest Rate of 5%, What Would the Present