Assuming an interest rate of 14%, the present value of $30,000 to be received 8 years from now would be closest to: Present Value of $1
Present Value of Annuity of $1

Question

Assuming an interest rate of 14%, the present value of $30,000 to be received 8 years from now would be closest to: Present Value of $1
 Present Value of Annuity of $1

Quizplus · Accepted Answer

Using the formula for present value of a single sum, we have PV = FV/(1+r)^n. Plugging in the values given, we have PV = 30,000/(1+0.14)^8 = $10,530. Therefore, the closest choice is A, $10,530.

Assuming an Interest Rate of 14%, the Present Value of $30,000