At an annual interest rate of 7%, the present value of $10000 received in seven years...

Question

Question

At an annual interest rate of 7%, the present value of $10000 received in seven years is closest to:

A) $3565

B) $6227

C) $7015

D) $7035

Answer 1

Answer #1

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

=>

Present value = 10000/1.07^7

= 6227

choose B)

Answer 2

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