If the interest rate is 10%, what is the approximate present value of $50,000 received in 20 years?
A)$7,432
B)$41,322
C)$45,455
D)$336,375

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($50,000), r is the interest rate (10% or 0.10), and n is the number of periods (20 years). Plugging in the values, PV = $50,000 / (1 + 0.10)^20 ≈ $7,432.

If the Interest Rate Is 10%, What Is the Approximate