What is the present value of $100 paid to you a year from now if the rate of interest is 5%?

Name: What is the present value of $100 paid to you a year from now if the rate of interest is 5%?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The present value of $100 paid to you a year from now can be calculated using the formula:
PV = FV / (1 + r)^n
where FV is the future value, r is the interest rate, and n is the number of years.
Plugging in the values, we get:
PV = 100 / (1 + 0.05)^1 = $95.24
Therefore, the best choice is A.

What Is the Present Value of $100 Paid to You