If the annual interest rate is 0 percent,the present value of receiving $1.10 in the next year is:
A) $1.00.
B) $1.01.
C) $1.11.
D) $1.10.

Name: If the annual interest rate is 0 percent,the present value of receiving $1.10 in the next year is: A) $1.00. B) $1.01. C) $1.11. D) $1.10.
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Question

Quizplus · Accepted Answer

If the annual interest rate is 0 percent, there is no discounting or compounding of future cash flows. Therefore, the present value of receiving $1.10 in the next year is simply $1.10.

If the Annual Interest Rate Is 0 Percent,the Present Value