What's the present value of $1,700 discounted back 5 years if the appropriate interest rate is 6%,compounded monthly?

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula: PV = FV / (1 + r/n)^(nt), where FV is the future value ($1,700), r is the annual interest rate (0.06), n is the number of compounding periods per year (12), and t is the number of years (5). Plugging in these values gives PV = 1700 / (1 + 0.06/12)^(12*5) = $1,260.33.

What's the Present Value of $1,700 Discounted Back 5 Years