Approximately how much would you need to invest today,to receive $200 in ten years,if you received an annual interest rate of ten percent?
A)$65
B)$77
C)$87
D)$97

Question

Quizplus · Accepted Answer

This problem can be solved using the formula for future value of a single sum: FV = PV x (1 + r)^n, where FV is the future value, PV is the present value, r is the interest rate, and n is the number of periods. In this case, we know FV = $200, r = 0.10, and n = 10. Plugging these values into the formula and solving for PV, we get PV = $77. Therefore, you would need to invest $77 today to receive $200 in ten years at an annual interest rate of ten percent. Choice B is the best answer.

Approximately How Much Would You Need to Invest Today,to Receive