Find the present value of an investment at 5.25% annual simple interest which is worth $6,700 after 5 years. Round your answer to the nearest dollar.
A) $P V = \$ 5,307$
B) $P V = \$ 5,312$
C) $P V = \$ 1,848$
D) $P V = \$ 5,305$
E) $P V = \$ 6,529$

Question

Find the present value of an investment at 5.25% annual simple interest which is worth $6,700 after 5 years. Round your answer to the nearest dollar.  
A)  $P V = \$ 5,307$
B)   $P V = \$ 5,312$
C)   $P V = \$ 1,848$
D)   $P V = \$ 5,305$
E)   $P V = \$ 6,529$

Quizplus · Accepted Answer

The present value (PV) can be found using the formula for simple interest: $PV = \frac{FV}{(1 + rt)}$, where FV is the future value ($6,700), r is the annual interest rate (0.0525), and t is the time in years (5). Plugging in the values: $PV = \frac{6700}{(1 + 0.0525 \times 5)} = \$5,307$.

Find the Present Value of an Investment at 5 PV=$5,307P V = \$ 5,307PV=$5,307

Find the Present Value of an Investment at 5 $P V = \$ 5,307$