Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.
-$\$ 300$ for 327 days; money earns $3 \%$
A) $\$ 291.26$
B) $\$ 292.17$
C) $\$ 292.15$
D) $\$ 7.85$

Question

Quizplus · Accepted Answer

The present value of the future amount is calculated using the formula:PV = FV / (1 + r/n)^(n*t)where:PV is the present valueFV is the future valuer is the annual interest raten is the number of times per year that the interest is compoundedt is the number of yearsIn this case, we have:FV = $300r = 3% = 0.03n = 1 (compounded annually)t = 327/365 = 0.8932Plugging these values into the formula, we get:PV = $300 / (1 + 0.03/1)^(1*0.8932)PV = $292.15Therefore, the present value of the future amount is $292.15.

Find the Present Value of the Future Amount $300\$ 300$300 For 327 Days; Money Earns

Find the Present Value of the Future Amount $\$ 300$ For 327 Days; Money Earns