If Lucy earns a 6% after-tax rate of return,$8,000 received in four years is worth how much today? Use Exhibit 3.1.(Round present and future value amounts to 3 places)

Question

Quizplus · Accepted Answer

To find the present value of $8,000 received in four years at a 6% rate of return, use the present value formula: PV = FV / (1 + r)^n. Here, FV = $8,000, r = 0.06, and n = 4. PV = 8000 / (1.06)^4 = $6,336.

If Lucy Earns a 6% After-Tax Rate of Return,$8,000 Received