Assuming an interest rate of 6%, the present value of $22,000 to be received 9 years from now would be closest to

Name: Assuming an interest rate of 6%, the present value of $22,000 to be received 9 years from now would be closest to
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Question

Quizplus · Accepted Answer

The present value formula is: 
PV = FV/(1 + r)^n

where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

Substituting the given values into the formula:
PV = 22,000/(1 + 0.06)^9
PV ≈ $13,024.

Assuming an Interest Rate of 6%, the Present Value of $22,000