What is the present value of $100,500 to be received 23 years from now if the interest rate is 7.5 percent?
A)$19,044.58
B)$163,565.44
C)$16,447.34
D)$26,200.30
E)None of the above.

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($100,500), r is the annual interest rate (7.5% or 0.075), and n is the number of years (23). Plugging these values into the formula gives PV = $100,500 / (1 + 0.075)^23, which equals approximately $19,044.58.

What Is the Present Value of $100,500 to Be Received