The present value of $200 to be received 10 years from today,assuming an opportunity cost of 10 percent,is: (Round to the nearest whole dollar)
A) $50
B) $200
C) $518
D) $77
E) $150

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc2c_0509_a768_5d9e95d3d4f6_TB2902_00 PV = 11ea7fdb_fc2c_050a_a768_f906ef83ce74_TB2902_00 = $77.11
Using a financial calculator:
N = 10, I/Y = 10, PMT = 0, FV = -200, cpt PV = $77.11

The Present Value of $200 to Be Received 10 Years