How much must be invested now at 9% interest to accumulate to $10,000 in five years?
A)$9,176.
B)$6,499.
C)$5,500.
D)$5,960.PV = $10,000 x .64993* = $6,499 *PV of $1: n=5; i=9%

Question

Quizplus · Accepted Answer

Using the present value formula, we get: 
PV = FV / (1 + r)^n 
PV = 10,000 / (1 + 0.09)^5 
PV = 6,498.87 
Rounding to the nearest cent, the answer is $6,499. Therefore, option B is the correct answer.

How Much Must Be Invested Now at 9% Interest to Accumulate