An investment will pay out $⁢50,000 in 10 years. The account has an annual interest rate of 2.5%, compounded monthly. What is the present value of this investment? Use the formula P⁢V=(F⁢V)/((1+(r)/(n))^n⋅t)

Use the present value formula with FV = 50,000, r = 0.025, n = 12, and t = 10: PV = 50,000 ÷ (1 + 0.025/12)^(12 × 10). This gives approximately $38,950.17, so the present value is choice C, $38,950.17.

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