Find the present value. Round to the nearest cent.
-To get $10,000 after 3 years at 6% compounded monthly
A) $10,616.78
B) $8,356.45
C) $3,333.33
D) $9,419.05

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r/n)^(nt), where FV is the future value ($10,000), r is the annual interest rate (6% or 0.06), n is the number of times the interest is compounded per year (12 for monthly), and t is the time in years (3). Plugging in the values: PV = $10,000 / (1 + 0.06/12)^(12*3) = $8,356.45.

Find the Present Value