If the interest rate is 20 percent, $100 to be received four years from today has a present value of approximately

Name: If the interest rate is 20 percent, $100 to be received four years from today has a present value of approximately
Brand: Quizplus
Rating: 4.9 (45 reviews)

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 years. Here, PV = $100 / (1 + 0.20)^4 ≈ $48.23.

If the Interest Rate Is 20 Percent, $100 to Be