Find the present value, using the present value formula and a calculator.
Achieve $8,000 in two years at 4.5% simple interest.

A) $6,560.00
B) $7,280.00
C) $720.00
D) $8,791.21
E) $7,339.45

Question

Find the present value, using the present value formula and a calculator. ​
Achieve $8,000 in two years at 4.5% simple interest.
​
A) $6,560.00
B) $7,280.00
C) $720.00
D) $8,791.21
E) $7,339.45

Quizplus · Accepted Answer

The present value formula is:

PV = FV / (1 + r * t)

where PV is the present value, FV is the future value, r is the interest rate, and t is the number of years.

Using this formula, we can find the present value of achieving $8,000 in two years at 4.5% simple interest:

PV = 8,000 / (1 + 0.045 * 2) = $7,339.45

Therefore, the best choice is E, $7,339.45.

Find the Present Value, Using the Present Value Formula and a Calculator