Calculate the present value PV of an investment that will be worth $1,000 at the

Question

Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Example 2.] (Round your answer to the nearest cent.) 7 years, at 5% per year, compounded annually PV =
Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Example 2.] (Round your answer to the nearest cent.) 7 years, at 5% per year, compounded annually PV =
Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT [See Example 2.] (Round your answer to the nearest cent.) 7 years, at 5% per year, compounded annually PV =

Explanation / Answer

PV = A / (1+i)n

Where

PV = present value.

A is amount = 1000

i = interest rate = 0.05

n = number of years = 7

PV = 1000(1.05)7

PV = $710.68

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.