What is the present value of a cash flow of $$ 1500$ if the rate of annual interest is $8.5 %$ ? Round to the nearest cent.

The present value is $$$
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Final Answer: The present value of the cash flow is approximately $1382.49$ .

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Step 1 ：Given a future value (FV) of $1500, an annual interest rate (r) of 8.5%, and a time period (n) of 1 year, we want to find the present value (PV).

Step 2 ：The formula for present value is $P V = \frac{F V}{(1 + r)^{n}}$ .

Step 3 ：Substitute the given values into the formula: $P V = \frac{1500}{(1 + 0.085)^{1}}$ .

Step 4 ：Calculate the present value to get $P V = 1382.4884792626729$ .

Step 5 ：Round the present value to the nearest cent to get approximately $1382.49.

Step 6 ：Final Answer: The present value of the cash flow is approximately $1382.49$ .

What is the present value of a cash flow of $1500 if the rate of annual interest is 8.5% ? Round to the nearest cent. The present value is $Question Help:Written ExampleMessage instructorPost to forumSubmit Question

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What is the present value of a cash flow of $$ 1500$ if the rate of annual interest is $8.5 %$ ? Round to the nearest cent.

The present value is $$$
Question Help:
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Message instructor
Post to forum
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