What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (PV of $1 and PVA of $1)(Use appropriate factor(s)from the tables provided.)

Question

Quizplus · Accepted Answer

PV of $1 at 9% for 1 year is 0.9174.
PVA of $1 at 9% for 1 year is 0.9174.
Therefore, the present value of $60,000 is:
$60,000 ÷ 0.9174 = $65,420.66
Thus, the amount of cash that must be invested today is $55,046 (rounded to the nearest dollar).

What Amount of Cash Must Be Invested Today in Order