Given an interest rate of 3 percent, the present value of a future payment of $2,080 to be paid in one year is:

Question

Quizplus · Accepted Answer

The formula for calculating present value is PV = FV / (1+r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods. In this case, n=1 and r=3%. Plugging in the values, we get PV = 2080 / (1+0.03)^1 = $2,019.42. Therefore, the best choice is C.

Given an Interest Rate of 3 Percent, the Present Value