Twelve years from now, you will be inheriting $60,000 What is this inheritance worth to you today if you can earn 6.0 percent interest, compounded annually?
A)$29,818.16
B)$29,945,94
C)$58,419.0550,112.92
D)$61,798.4750,100.00
E)$53,003.15

Question

Quizplus · Accepted Answer

To find the present value of the inheritance, we use the formula for present value: PV = FV / (1 + r)^n, where FV is the future value ($60,000), r is the interest rate (0.06), and n is the number of years (12). Calculating this gives PV = $60,000 / (1.06)^12 = $29,818.16.

Twelve Years from Now, You Will Be Inheriting $60,000 What