What is the present value of $2,000 to be received in six years if interest rates are 8% compounded semiannually? (Round to the nearest whole dollar)
A) $1,258
B) $1,249
C) $1,852
D) $1,158
E) $1,923

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc2b_68bd_a768_97d2471940fe_TB2902_00 PV = 11ea7fdb_fc2b_68be_a768_e5b3d60f2454_TB2902_00 = $1,249.19
Using a financial calculator:
N = 12, I/Y = 4, PMT = 0, FV = -2000, cpt PV = $1,249.19

What Is the Present Value of $2,000 to Be Received