Find the present value of $5,325 to be received in one period if the rate is 6.5%.
A)$5,000.00
B)$5,023.58
C)$5,644.50
D)$5,671.13
E)None of the above.

Question

Quizplus · Accepted Answer

The present value of a future sum is calculated by dividing the future sum by (1 + r), where r is the rate. In this case, the future sum is $5,325, the rate is 6.5%, or 0.065, and the present value is $5,325 / (1 + 0.065) = $5,000.00.

Find the Present Value of $5,325 to Be Received in One