If the annual interest rate is 0 percent,the present value of receiving $210 in the next year is:
A) $221.
B) $200.
C) $201.
D) $210.

Question

Quizplus · Accepted Answer

If the annual interest rate is 0 percent, the present value of receiving $210 in the next year is simply the same as the amount, which is $210. This is because there is no interest rate to discount or adjust the value for time. Thus, the correct choice is D, $210.

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