What is the present value of $960 in one year if the current rate of interest is 6 percent?
A)$676.76
B)$905.66
C)$1,017.60
D)$1,449.46

Question

Quizplus · Accepted Answer

The present value (PV) can be calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($960), r is the interest rate (6% or 0.06), and n is the number of periods (1 year). Plugging in the values, we get PV = $960 / (1 + 0.06)^1 = $960 / 1.06 = $905.66.

What Is the Present Value of $960 in One Year