What is the present value of a $500 payment made in 4 years when the discount rate is 8 percent?
A)$365.35
B)$367.51
C)$460.00
D)$680.24

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 discount rate, and n is the number of periods. Plugging in the values: PV = $500 / (1 + 0.08)^4 = $500 / 1.3605 = $367.51.

What Is the Present Value of a $500 Payment Made