Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.
-$\$ 300$ for 9 months; money earns $2 \%$
A) $\$ 4.43$
B) $\$ 296.05$
C) $\$ 294.12$
D) $\$ 295.57$

Question

Quizplus · Accepted Answer

The present value is calculated using the formula $ PV = \frac{FV}{(1 + r \times t)} $, where $ FV = 300 $, $ r = 0.02 $, and $ t = \frac{9}{12} $. This gives $ PV = \frac{300}{(1 + 0.02 \times \frac{9}{12})} \approx 295.57 $.

Find the Present Value of the Future Amount $300\$ 300$300 For 9 Months; Money Earns

Find the Present Value of the Future Amount $\$ 300$ For 9 Months; Money Earns