If you knew that an investment was going to pay you $128 in 5 years, and you knew that the annual interest rate over that time would be 5 percent, you could calculate the present value to be: A)$95. B)$90. C)$105. D)None are correct.

Question

Quizplus · Accepted Answer

The present value (PV) of a future amount can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the annual interest rate, and n is the number of years. Using the given values, PV = $128 / (1 + 0.05)^5, which does not match any of the provided options.

If You Knew That an Investment Was Going to Pay