Given a discount rate of 10 percent, the present value of receiving $10,000 two years in the future is

Name: Given a discount rate of 10 percent, the present value of receiving $10,000 two years in the future is
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

The present value formula with a discount rate of 10% for receiving $10,000 two years in the future is:
PV = FV / (1+r)^n
where FV = $10,000, r = 0.10, and n = 2
Plugging these values into the formula:
PV = 10,000 / (1+0.10)^2
PV = $8,264.46
Therefore, choice C is the correct answer.

Given a Discount Rate of 10 Percent, the Present Value