Question

Compute the present value of​ $46,000, invested for six years at​ 8%. Present value of​ $1: ​5% ​6% ​7% ​8% ​9% 3 0.864 0.840 0.816 0.794 0.772 4 0.823 0.792 0.763 0.735 0.708 5 0.784 0.747 0.713 0.681 0.650 6 0.746 0.705 0.666 0.630 0.596 7 0.711 0.665 0.623 0.583 0.547

Answer 1

$72,996.20

Step-by-step explanation:

PV=X(1+i)^n

i=8/100 = 0.08

X=$46,00

n=6

PV=46000 ( 1 + 0.08)^6

Pv=46000(1.08)^6

Pv=46000(1.586874)

Pv=72996.204

Pv=$72996.20

The present value of $46000 invested for six years at 8% is $72,996.20