Given an annual interest rate of 5 percent, what is the present value of receiving $2,000 in one year?
A)$1950.25
B)$1980.19
C)$1,904.76
D)$1934.89

Question

Quizplus · Accepted Answer

The present value can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the annual interest rate, and n is the number of years. Plugging in the values, we get PV = 2000 / (1 + 0.05)^1 = 1904.76. Therefore, the best choice is C.

Given an Annual Interest Rate of 5 Percent, What Is