The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is ________.

Name: The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is ________.
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Question

The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is  ________.

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. Here, PV = $100 / (1 + 0.09)^10 = $42.24, which rounds to $42.

The Present Value of $100 to Be Received 10 Years