The present value of $100.00 expected two years from today at a discount rate of 6% is:
A)$112.36.
B)$106.00.
C)$100.00.
D)$89.00.

Name: The present value of $100.00 expected two years from today at a discount rate of 6% is: A)$112.36. B)$106.00. C)$100.00. D)$89.00.
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Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of periods. Here, PV = $100 / (1 + 0.06)^2 = $89.00.

The Present Value of $100