Which,if any,of the present values below are correct?
A)$1,000 one year from today at 8 percent interest = $945.45
B)$1,000 one year from today at 9 percent interest = $911.11
C)$1,000 one year from today at 10 percent interest = $909.09
D)None of the above are correct to the nearest penny.

Question

Quizplus · Accepted Answer

The correct formula to calculate present value is: PV = FV / (1 + r)^n, where PV is present value, FV is future value, r is the interest rate, and n is the number of periods. Using this formula for each option, we get:
A) PV = 1000 / (1 + 0.08)^1 = $925.93
B) PV = 1000 / (1 + 0.09)^1 = $917.43
C) PV = 1000 / (1 + 0.10)^1 = $909.09

Therefore, option C is the closest to the given value of $1,000 at 10% interest.

Which,if Any,of the Present Values Below Are Correct