If the future value of a sum in one year is $440 and the annual interest rate is 10%, what is the present value?

Name: If the future value of a sum in one year is $440 and the annual interest rate is 10%, what is the present value?
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Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r), where FV is the future value ($440), and r is the interest rate (10% or 0.10). Thus, PV = $440 / (1 + 0.10) = $400.

If the Future Value of a Sum in One Year