The Present Value That Will Give a Future Value S $1 + r$

question 232

Multiple Choice

The present value that will give a future value S in 4 years with interest compounded annually varies inversely as the fourth power of $1 + r$ r, where r is the annual interest rate. If the present value of $3.71 gives a future value
Of $5000, what would be the present value of $10,000? Round to the nearest dollar.

• A) $8
• B) $5
• C) $7
• D) $45

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