What is the present value of $100,000 due exactly 4 years and 8 months from today if j₂ = 9% and the practical method of discounting is used? A)$66,324.55 B)$66,310.35 C)$66,296.00 D)$65,358.66

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Quizplus · Accepted Answer

The present value is calculated using the formula for discounting with a nominal interest rate compounded semi-annually. The formula is PV = FV / (1 + (j/2))^(2*n), where j is the nominal rate and n is the number of years. Here, FV = $100,000, j = 9%, and n = 4 + 8/12 years.

What Is the Present Value of $100,000 Due Exactly 4