If the interest rate is 4%, what is the approximate present value of $2,000 received in four years?
A)$2,340
B)$1,710
C)$1,923
D)$2,849

Name: If the interest rate is 4%, what is the approximate present value of $2,000 received in four years? A)$2,340 B)$1,710 C)$1,923 D)$2,849
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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 interest rate, and n is the number of years. For $2,000 in four years at 4%, PV = 2000 / (1.04)^4 ≈ $1,710.

If the Interest Rate Is 4%, What Is the Approximate