What is the present value of $3,500 received 3 years from today if the
What is the present value of $3,500 received 3 years from today if the prevailing interest rate is 6.10%?
A) $2,732.98
B) $2,930.37
C) $3,625.14
D) $4,192.20
ANSWER
B
Explanation: B) PV = FV/(1+r)^n = $3,500/((1.0610 )^3 ) = $2,930.37.
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