If the interest rate is 4 percent, to get back $200 in one year you would need to deposit ________ today.

Question

Quizplus · Accepted Answer

To find the amount you need to deposit today to get back $200 in one year at an interest rate of 4 percent, you use the formula for calculating the present value: Present Value = Future Value / (1 + interest rate). Plugging in the values gives: Present Value = $200 / (1 + 0.04) = $200 / 1.04 = $192.31.

If the Interest Rate Is 4 Percent, to Get Back