In five years, you want to be able to buy a new car for $30,000. If the interest rate is 3 percent a year, what is the present value of this sum?     A. $30,000.00   B. $25,500.00   C. $25,878.26   D. $34,778.22

Economics (MindTap Course List)
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ISBN:9781337617383
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Chapter29: Interest, Rent, And Profit
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In five years, you want to be able to buy a new car for $30,000. If the interest rate is 3 percent a year, what is the present value of this sum?
 
 
A.
$30,000.00
 
B.
$25,500.00
 
C.
$25,878.26
 
D.
$34,778.22
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