With a 10% interest rate,the present value of $100 received one year from today is $90.91.

Name: With a 10% interest rate,the present value of $100 received one year from today is $90.91.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($100), r is the interest rate (10% or 0.10), and n is the number of periods (1 year). Plugging in the values gives PV = $100 / (1 + 0.10)^1 = $90.91.

With a 10% Interest Rate,the Present Value of $100 Received