The present value of $6,000 to be received in 7 years at 10% is:

Name: The present value of $6,000 to be received in 7 years at 10% is:
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

Using the formula for present value of a future amount:

PV = FV / (1 + r)^n

where PV is the present value, FV is the future value, r is the interest rate, and n is the number of years.

Plugging in the given values:

PV = 6,000 / (1 + 0.1)^7
PV = 6,000 / 1.948717
PV = $3,079.20

Therefore, the best choice is B.

The Present Value of $6,000 to Be Received in 7