The present value of $60,000 to be received in one year,at 6% compounded annually,is _____ (rounded to nearest dollar).Use the following table,if needed.

A) $56,604
B) $63,396
C) $60,000
D) $3,396

Question

The present value of $60,000 to be received in one year,at 6% compounded annually,is _____ (rounded to nearest dollar).Use the following table,if needed. ​
​

A) ​$56,604 
B) ​$63,396 
C) ​$60,000 
D) ​$3,396

Quizplus · Accepted Answer

To calculate the present value, we can use the formula: Present Value = Future Value / (1 + interest rate)^n. Plugging in the given values, we get: Present Value = 60,000 / (1 + 0.06)^1 = $56,603.77, which rounded to the nearest dollar is $56,604. Therefore, the best choice is A.

The Present Value of $60,000 to Be Received in One