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19 votes
What is the present value of 1000 for 2 years at 3% interest

User Tatactic
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1 Answer

27 votes
27 votes

Answer:

$942.60

Explanation:

Future Value (FV)= $1,000

Number of periods (n)= 2

Interest rate (i)= 3% = 0.03

To calculate the present value (PV), we need to use the following formula:

FV= PV*(1í)^n

Isolating PV:

PV= FV/(1+i)^n

Pv=1,000/(1.03^2)

$942.60

Hope this helps, have a great day :)

User YourAboutMeIsBlank
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