Joseph Harris is considering an investment that pays 6.5 percent annually. How much does he need to invest today so that he will have $25,000 in seven years? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

To find the present value, use the formula: PV = FV / (1 + r)^n. Here, FV = $25,000, r = 0.065, and n = 7. Calculating gives PV = $25,000 / (1.065)^7 ≈ $16,088.

Joseph Harris Is Considering an Investment That Pays 6