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zzz [600]
2 years ago
15

The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

Business
1 answer:
ratelena [41]2 years ago
6 0

Answer:

c. $31,888

Explanation:

The formula for calculating the present value is as below

Pv = FV x {  1/ (1+ r)^n }

Pv = $40,000 x { 1/ (1 +0.12)^2

Pv =$40,000 x (1/1.2544)

Pv =$40,000 x 0.7971938

Pv =$31,887.50

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