The present value (PV) of a $110 payment one year in the future (FV), given a 10 percent interest rate, is:

Name: The present value (PV) of a $110 payment one year in the future (FV), given a 10 percent interest rate, is:
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Question

Quizplus · Accepted Answer

The present value can be calculated using the formula PV = FV / (1 + r)^n, where r is the interest rate as a decimal and n is the number of years. Plugging in the values, we get PV = 110 / (1 + 0.10)^1 = 100. Therefore, the best choice is C.

The Present Value (PV) of a $110 Payment One Year