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What is the present value of an investment that will pay $2,000 at the end of the year when interest is compounded annually at 5.10%
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7 votes
What is the present value of an investment that will pay $2,000 at the end of the year when interest is compounded annually at 5.10%

User Havard Graff
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1 Answer

23 votes
23 votes

Answer:

the present value of an investment is $1,902.94

Step-by-step explanation:

The computation of the present value of an investment is given below:

present value

= Future value ÷ (1 + rate of interest)^time period

=$2,000 ÷ (1+.051)^1

= $2,000 ÷ 1.051

= $1902.94

Hence, the present value of an investment is $1,902.94

User Primit
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