Windsor Company will receive $100,000 in 7 years.If the appropriate interest rate is 10%, the present value of the $100,000 receipt is
A)$51,000.
B)$51,316.
C)$151,000.
D)$194,872.

Name: Windsor Company will receive $100,000 in 7 years.If the appropriate interest rate is 10%, the present value of the $100,000 receipt is A)$51,000. B)$51,316. C)$151,000. D)$194,872.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Using the present value formula: PV = FV / (1 + r)^n
PV = 100,000 / (1 + 0.1)^7
PV = $51,316. Therefore, the best choice is B.

Windsor Company Will Receive $100,000 in 7 Years