If the interest rate is 8 percent, then the present value of $1,000 to be received in 4 years is $735.03.

Question

Quizplus · Accepted Answer

The present value (PV) of $1,000 to be received in 4 years at an 8 percent interest rate can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($1,000), r is the annual interest rate (0.08), and n is the number of years (4). Plugging in these values gives PV = $1,000 / (1 + 0.08)^4 = $1,000 / 1.36049 = $735.03.

If the Interest Rate Is 8 Percent, Then the Present