If the annual interest rate is 10 percent, the present value of $100 to be received two years from now is

Question

Quizplus · Accepted Answer

The formula for present value is: 
PV = FV / (1 + r)^n
where PV is the present value, FV is the future value, r is the annual interest rate, and n is the number of years.

Substituting the given values: 
PV = $100 / (1 + 0.10)^2 = $82.64

Therefore, the present value of $100 to be received two years from now is $82.64.

If the Annual Interest Rate Is 10 Percent, the Present