Question

1. what is the present value of each of the following single amounts: a. $12,000 to be received in 5 years at 8% compounded annually

Answer 1

Answer: 8166,998 ≈ 8167

Explanation:

PV formula = FV / (1+r) ^ n

PV = 12000 / (1 + 0.08) ^ 5 = 8166.998 ≈ 8167