Find the Present Value of the Future Value

question 11

Multiple Choice

Find the present value of the future value.
-$2000, invested for 5 years at 4% compounded quarterly

• A) $1659.09
• B) $2420.38
• C) $2440.38
• D) $1639.09

---

Definitions:

Probability Density Function

A function that describes the relative likelihood for a random variable to take on a given value.

Continuous Random Variable

A type of random variable that can take an infinite number of possible values, often representing measurements on a continuous scale.

Standard Normal Probability Distribution

A type of normal distribution with a mean of 0 and a standard deviation of 1, used in statistics to standardize scores.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used to indicate the spread of a distribution.