Find the present value. Round to the nearest cent.
-To get $2000 after 10 years at 9% compounded semiannually
A) $1,170.71
B) $866.60
C) $829.29
D) $844.82

Question

Quizplus · Accepted Answer

The present value is calculated using the formula $ PV = \frac{FV}{(1 + \frac{r}{n})^{nt}} $, where $ FV = 2000 $, $ r = 0.09 $, $ n = 2 $, and $ t = 10 $. Plugging in these values gives $ PV = \frac{2000}{(1 + \frac{0.09}{2})^{2 \times 10}} \approx 829.29 $.

Find the Present Value