If the interest rate is 8 percent, the present value of $750 to be received two years from now is

Name: If the interest rate is 8 percent, the present value of $750 to be received two years from now is
Brand: Quizplus
Rating: 4.9 (49 reviews)

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 $750, 8% interest, and 2 years, PV = 750 / (1 + 0.08)^2 = 643.00.

If the Interest Rate Is 8 Percent, the Present Value