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tino4ka555 [31]
3 years ago
13

Present and future value

Business
1 answer:
Sidana [21]3 years ago
8 0

Answer:

$ 17,002.21  (none of the options is correct)

Explanation:

The formula for determining the present value ,which is the actual amount invested to give a future value is given below:

PV=FV*(1+r)^-n

The PV is the present value which is unknown

FV is the future worth of the investment which is $24,000

r is the rate of return which is 9% per year

n is the duration of investment which is 4 years

PV=$24,000*(1+9%)^-4

PV=$24,000*(1.09)^-4

PV=$24,000*0.708425211 =$ 17,002.21  

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