Using the exact method,what is the present value of $100,000 due in 19 months if j₄ = 12%? (Answer to nearest dollar. ) A)$82,935 B)$82,927 C)$82,919 D)$82,901

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The present value (PV) of a future amount can be calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value, r is the periodic interest rate, and n is the number of periods. Given a semi-annual interest rate of 12% (or 0.12 per half-year), for a period of 19 months (which is 1.5833 years or about 3.1667 semi-annual periods), the calculation is as follows:- Convert the annual rate to a semi-annual rate: 12% / 2 = 6% or 0.06 per period.- Convert the time to semi-annual periods: 19 months / 6 = 3.1667 periods.- Calculate the present value: PV = $100,000 / (1 + 0.06)^3.1667.Using a calculator:PV = $100,000 / (1.06)^3.1667 ≈ $82,927.Therefore, the present value of $100,000 due in 19 months at a semi-annual interest rate of 12% is approximately $82,927, rounded to the nearest dollar.

Using the Exact Method,what Is the Present Value of $100,000