If the interest rate is 5 percent,the present value of $200 received at the end of five years is:
A) $121.34.
B) $156.71.
C) $176.41.
D) $132.62.

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 interest rate, and n is the number of years. For $200 at 5% over 5 years, PV = 200 / (1 + 0.05)^5 = $156.71.

If the Interest Rate Is 5 Percent,the Present Value of $200