If the annual interest rate is 10%,the present value of $200 paid 3 years from now is

Name: If the annual interest rate is 10%,the present value of $200 paid 3 years from now is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To find the present value, we use the formula:

Present value = Future value / (1 + r)^n

where r is the annual interest rate and n is the number of years.

Plugging in the values, we get:

Present value = $200 / (1 + 0.10)^3  = $150.26 (rounded to the nearest cent)

Therefore, the best choice is B.

If the Annual Interest Rate Is 10%,the Present Value of $200