If the single amount of $4,000 to be received in 2 years is discounted at 11%, its present value is
A) $3,636.
B) $3,246.
C) $3,604.
D) $5,508.

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of periods. Plugging in the values: PV = $4,000 / (1 + 0.11)^2 = $3,246.

If the Single Amount of $4,000 to Be Received in 2