Question

the present value that must be invested to get $1,000 after 6 years at the interest rate of 11.5% is $ round up to the nearest cent

Answer 1

The future worth (F) of the current investment (P) given that the interest (i) is compounded can be calculated by the formula,
F = P x (1 + i)^n
where n is the number of years. Substituting the given values to solve for P,
1000 = P x (1 + 0.115)^6
The value of P is approximately $520.42.