If the future value of a sum is $220 and the annual interest rate is 10%, what is the present value?

Name: If the future value of a sum is $220 and the annual interest rate is 10%, what is the present value?
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Quizplus · Accepted Answer

The present value (PV) 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 periods. Here, assuming n = 1 year, PV = $220 / (1 + 0.10) = $200.

If the Future Value of a Sum Is $220 and the Annual