How much would $5,000 due in 15 years be worth today if the discount rate were 5.5%?
A) $2,351.65
B) $2,239.67
C) $2,441.24
D) $2,530.82
E) $1,858.92

Question

Quizplus · Accepted Answer

We can use present value formula: PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods.

So, in this case, we have:
PV = 5,000 / (1 + 0.055)^15
PV = $2,239.67

Therefore, the best choice is B.

How Much Would $5,000 Due in 15 Years Be Worth