Final answer:
To find the present value of $60,000 due in 4 years at a 6% interest rate compounded quarterly, we need to use the formula for present value. By plugging in the values and evaluating the expression, we find that the present value is approximately $46,244.73.
Step-by-step explanation:
In this scenario, we are given a future value of $60,000 that is due in 4 years. The interest rate is 6% per year, compounded quarterly. We need to find the present value of this amount using the given interest rate and time period.
To calculate the present value, we can use the formula:
Present Value = Future Value / (1 + (Interest Rate / Number of Compounding Periods)) ^ (Number of Compounding Periods × Time Period)
In this case, the number of compounding periods is 4 times a year for 4 years, which is 16. Plugging the values into the formula, we get:
Present Value = $60,000 / (1 + (0.06 / 4)) ^ (4 × 16)
After evaluating the expression, we find that the present value is approximately $46,244.73, rounded to the nearest cent.