What is the present value of $ 1,000 received one year from now bearing interest at 10%?

Question

Quizplus · Accepted Answer

The present value (PV) of $1,000 received one year from now at an interest rate of 10% is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the interest rate, and n is the number of periods. Plugging in the values, we get PV = $1,000 / (1 + 0.10)^1 = $1,000 / 1.10 = $909.09, which rounds to $909.

What Is the Present Value of $ 1,000 Received One