Which is the smallest if the interest rate is 8 percent?
A)$100 to be received after five years
B)the present value of an annuity of $100 for five years
C)$100 received in the present
D)$100 received for two years

Question

Quizplus · Accepted Answer

The present value of $100 to be received after five years at an 8% interest rate is the smallest because it is discounted the most compared to the other options.

Which Is the Smallest If the Interest Rate Is 8