The present value of $13,000 received seven years from today,assuming an interest rate of 5% compounded annually is:
A)$ 9,269.00
B)$18,292.30
C)$17,550.00
D)$ 9,238.85

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 ($13,000), r is the annual interest rate (5% or 0.05), and n is the number of years (7). Plugging in these values gives PV = $13,000 / (1 + 0.05)^7 = $13,000 / (1.40710) ≈ $9,238.85.

The Present Value of $13,000 Received Seven Years from Today,assuming