The present value of $175,000 received at the end of six years discounted at 12% is
A) $89,523
B) $88,660
C) $82,544
D) $126,000

Name: The present value of $175,000 received at the end of six years discounted at 12% is A) $89,523 B) $88,660 C) $82,544 D) $126,000
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Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of periods. Plugging in the values: PV = $175,000 / (1 + 0.12)^6 = $88,660.

The Present Value of $175,000 Received at the End of Six