What is the present value of $45,000 to be received 50 years from today if the discount rate is 8 percent?
A) $959.46
B) $1,147.07
C) $841.41
D) $1,106.18
E) $1,291.06

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 discount rate, and n is the number of periods. Plugging in the given values: PV = $45,000 / (1 + 0.08)^50 = $959.46.

What Is the Present Value of $45,000 to Be Received