9
QuizMultiple Choice

Present and Future Value — Quiz

Question 9 • Advanced Financial Algebra

An investment will pay out $⁢50,000 in 10 years. The account has an annual interest rate of 2.5%, compounded monthly. What is the present value of this investment? Use the formula P⁢V=(F⁢V)/((1+(r)/(n))^n⋅t)

Answer
A
39 dollars comma 059 point 9 2
B
38 dollars comma 980 point 4 0
C
38 dollars comma 950 point 1 7
D
48 dollars comma 766 point 7 6
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