Answered

IDNLearn.com: Your one-stop destination for finding reliable answers. Get timely and accurate answers to your questions from our dedicated community of experts who are here to help you.

The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)
Oa. $40,000
Ob. 58,112
Oc. $31,888
Od. $48,112

Sagot :

Samawatiidn

Answer:

c. $31,888

Explanation:

The formula for calculating the present value is as below

Pv = FV x {  1/ (1+ r)^n }

Pv = $40,000 x { 1/ (1 +0.12)^2

Pv =$40,000 x (1/1.2544)

Pv =$40,000 x 0.7971938

Pv =$31,887.50

We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. IDNLearn.com is your go-to source for dependable answers. Thank you for visiting, and we hope to assist you again.