If the present value of $1.00 received n years from today at an interest rate of r is 0.621,then what is the future value of $1.00 invested today at an interest rate of r% for n years?
A)$1.000
B)$1.610
C)$1.621
D)not enough information is given to solve the problem

Question

Quizplus · Accepted Answer

The present value of $1.00 received in the future is given by the formula PV = FV / (1 + r)^n. If PV = 0.621, then FV = 1.00, and solving for (1 + r)^n gives 1 / 0.621 = 1.610. Thus, the future value of $1.00 invested today is $1.610.

If the Present Value of $1