What is the present value of $3,500 received 3 years from today if the prevailing interest rate is 6.10%?
A)$2,732.98
B)$2,930.37
C)$3,625.14
D)$4,192.20

Question

Quizplus · Accepted Answer

The present value (PV) of a future amount can be calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate per period, and n is the number of periods. Plugging in the given values: PV = $3,500 / (1 + 0.061)^3 = $2,930.37.

What Is the Present Value of $3,500 Received 3 Years