What is the present value of $50,000 to be received after 1 year if the market rate of interest is 8 percent per year?

Name: What is the present value of $50,000 to be received after 1 year if the market rate of interest is 8 percent per year?
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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 periods. For $50,000, 8% interest, and 1 year: PV = $50,000 / (1 + 0.08)^1 = $46,296.30.

What Is the Present Value of $50,000 to Be Received