What is the present value of $100 paid in 10 years if the interest rate is 2% per year?
A)$82.03
B)$98.04
C)$102.00
D)$121.90

Question

Quizplus · Accepted Answer

We can use the formula for present value of a future amount: 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 years. Plugging in the given values, we get PV = 100 / (1 + 0.02)^10 = $82.03. Therefore, the best choice is A.

What Is the Present Value of $100 Paid in 10