What is the present value of $777 in one year if the current rate of interest is 7 percent?

Name: What is the present value of $777 in one year if the current rate of interest is 7 percent?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The formula for present value is:
PV = FV / (1 + r)^n
where PV = present value, FV = future value, r = interest rate, and n = number of time periods.
Using this formula, PV = $777 / (1 + 0.07)^1 = $726.17. Therefore, the best choice is B.

What Is the Present Value of $777 in One Year