An investor wants to know the present value of an investment that will be worth $⁢15,000 in 7 years. The interest rate offered is 3.8% compounded monthly. What is the present value? Use P⁢V=(F⁢V)/((1+(r)/(n))^n⋅t)

Use the compound-interest present value formula with FV = $15,000, r = 0.038, n = 12, and t = 7. There are 12 × 7 = 84 monthly compounding periods, so PV = 15,000 ÷ (1 + 0.038/12)^84 ≈ $11,501.42. Therefore, the present value is choice C, $11,501.42.

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