If the present value of $110 to be received one year from now is $100, what will $100 be worth two years from now?

Question

Quizplus · Accepted Answer

If the present value of $110 to be received one year from now is $100, then the interest rate is 10% per year ($110/$100 = 1 + r, where r is the interest rate). 
So, $100 invested today will be worth $110 one year from now, and then $121 two years from now (since $110 will grow by 10%). Therefore, the answer is B.

If the Present Value of $110 to Be Received One