How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?

Name: How much money would you have to put into a savings account today to be worth $500 three years from now at a market rate of interest equal to 8 percent?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the present value, use the formula: PV = FV / (1 + r)^n. Here, FV = $500, r = 0.08, and n = 3. PV = 500 / (1.08)^3 = $397.14, which rounds to $397.

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