Find the present value of the following future amount. $9000 at 3% compounded semiannually for 7...

Question

Question

Find the present value of the following future amount. $9000 at 3% compounded semiannually for 7 years What is the present value?

Answer 1

Answer #1

Present value = FV/(1+r/n)^nt

Future Valu (FV) = 9,000

r = 3%

n = 2

t = 7

PV = 9,000/(1 + 0.03/2)¹⁴

= 9,000/1.23175573

= 7,306.6435

Therefore, Present value is $7,306.6435

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Answer 2

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