The present value of $3,000 to be received in two years at a discount rate of 10 percent is $3,630.

Name: The present value of $3,000 to be received in two years at a discount rate of 10 percent is $3,630.
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Question

Quizplus · Accepted Answer

The present value formula is PV = FV / (1 + r)^n, where PV is present value, FV is future value, r is the discount rate, and n is the number of years. Plugging in the given values, we get:
3,630 = 3,000 / (1 + 0.1)^2
This equation is not true, so the answer is false.

The Present Value of $3,000 to Be Received in Two