Which of the following has a present value of $100?
A)$110 in two years when the interest rate is 5 percent
B)$112.36 in two years when the interest rate is 6 percent
C)$117.49 in two years when the interest rate is 7 percent
D)None of the above are correct to the nearest cent.

Question

Quizplus · Accepted Answer

The present value of $112.36 in two years at a 6% interest rate is $100, calculated using the formula PV = FV / (1 + r)^n.

Which of the Following Has a Present Value of $100