If the interest rate is 10%,then $1 received one year from now is worth how much today?

Question

Quizplus · Accepted Answer

This question is asking about the present value of $1 received one year from now at an interest rate of 10%. The formula for present value is PV = FV / (1 + r), where PV is the present value, FV is the future value, and r is the interest rate. Plugging in the values from the question, we get:
PV = 1 / (1 + 0.1)
PV = 0.9091
Therefore, $1 received one year from now is worth $0.91 today. So, the best choice is C.

If the Interest Rate Is 10%,then $1 Received One Year