UU 0.01) Future value 4448.38 The future value is $4448.38 What is the present value of...

Question

Question

Answer 1

Answer #1

Information provided:

Future value= $12,250

Time= 3 years

Interest rate= 5%

Enter the below in a financial calculator to compute the present value:

FV= 1,000

N= 3

I/Y= 5

Press the CPT key and PV to compute the present value.

The value obtained is 10,582.01.

Therefore, the present value of the bond is $10,582.01.

Hence, the answer is option a.

In case of any query, kindly comment on the solution.

Answer 2

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