If the interest rate is 3.75 percent, then what is the present value of $4,750 to be received in 11 years?
A)$7,121.36
B)$3,168.29
C)$2,666.09
D)$3,806.09

Question

Quizplus · Accepted Answer

The present value (PV) of a future amount can be calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate per period, and n is the number of periods. Plugging in the given values: PV = $4,750 / (1 + 0.0375)^11 ≈ $3,168.29.

If the Interest Rate Is 3