What is the present value of $14,150 to be received 3 years from today if the...

Question

Question

What is the present value of $14,150 to be received 3 years from today if the discount rate is 5.75 percent?

(a) $12,653.06

(b) $7,382.61

(c) $11,965.07

(d)$11,845.42

Answer 1

Answer #1

The correct OPTION is''(c) $11,965.07''

Explanation below:-

Given data,

Future value = $14,150

Time = 3years

Rate of interest = 5.75% = 0.0575

Here, we have to find the present value(PV) and it can be calculated by the following formula:-

PV = FV / (1 + r)ⁿ

Subst uting the espectue chiuem Data PV : s i4150 (1 0 0575) $ 14 150 -1826088544) PV

Answer 2

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