If the interest rate is 2.49 percent,then what is the present value of $5,000 to be received in 4 years?
A)$4,531.52
B)$4,878.52
C)$5,124.50
D)$5,516.91

Question

Quizplus · Accepted Answer

To calculate present value, we use the formula: PV = FV/(1+r)^n, where FV is the future value, r is the interest rate and n is the number of years. Substituting the given values, we get PV = 5000/(1+0.0249)^4 = $4,531.52. Therefore, the best choice is A.

If the Interest Rate Is 2