The present value of a $110 payment in one year, given an annual 10% interest rate, is:

Name: The present value of a $110 payment in one year, given an annual 10% interest rate, is:
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Quizplus · Accepted Answer

The present value can be found using the formula 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. Plugging in the numbers, we get PV = 110 / (1 + 0.10)^1 = $100.

The Present Value of a $110 Payment in One Year