An investment will pay $3,000 six months from now. What purchase price will provide a rate of return of 12%?
A) $2,830.19
B) $3,180.00
C) $2,000.00
D) $2,500.00
E) $2,724.17

Name: An investment will pay $3,000 six months from now. What purchase price will provide a rate of return of 12%? A) $2,830.19 B) $3,180.00 C) $2,000.00 D) $2,500.00 E) $2,724.17
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Question

Quizplus · Accepted Answer

The present value of the investment is $2,830.19, which is the amount that must be invested today to earn a rate of return of 12% over six months.

An Investment Will Pay $3,000 Six Months from Now