The present value of $200 two years from now when the interest rate is 7 percent is
A) $207
B) $214
C) $187
D) $175

Name: The present value of $200 two years from now when the interest rate is 7 percent is A) $207 B) $214 C) $187 D) $175
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Question

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 = $200 / (1 + 0.07)^2 = $175.

The Present Value of $200 Two Years from Now When