If the interest rate is 5 percent (0.05)per year,what is the present value of $3,000 to be received two years from now?

Name: If the interest rate is 5 percent (0.05)per year,what is the present value of $3,000 to be received two years from now?
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Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of years. For $3,000 at 5% interest over 2 years, PV = 3000 / (1 + 0.05)^2 = 3000 / 1.1025 = $2,721.09.

If the Interest Rate Is 5 Percent (0