Question

Timed Test This test has a time limit of 1 hour. This test will save and submit automatically when the omdeles. Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Multiple Attempts Not allowed. This test can only be taken once. Force Completion This test can be saved and resumed at any point until time has expired. The timer will continue to run if you leave the test. Remaining Time: 34 minutes, 00 seconds. Question Completion Status: 1 2 3 4 5 199 100 11 12 13 14 15 → Moving to another question will save this response. Question 12 A company needs an amount of $600,000 four years from now. How much could the company afford to spend now at an interest rate of 12% per year? $381,300 $944,400 $600,000 $427,080 Moving to another question will save this response. MacBook Pro OSC 8o. DOO

Answer 1

Future value = FV = 600000

Present value = PV

Interest rate = 12% = 0.12 = r

Years = n = 4

PV = FV / (1+r)ⁿ

PV = (600000)/(1+0.12)⁴

PV = 600000/1.57356

PV = 381300$

Answer: 381300$