If the interest rate is 6%, what is the approximate present value of $150,000 received in seven years?
A)$133,499
B)$141,509
C)$225,545
D)$99,759

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 interest rate, and n is the number of years. For $150,000 at 6% over 7 years, PV = $150,000 / (1.06)^7 ≈ $99,759.

If the Interest Rate Is 6%, What Is the Approximate