Which of the following is the equivalent of $300 received today?
A) Seven hundred ninety-five dollars ninety-nine cents to be received 20 years in the future assuming a 5 percent annual interest rate.
B) Hundred dollars to be received two years from now and $200 three years from now.
C) Three hundred dollars compounded at 10 percent for one year.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

The future value of $300 today at a 5% annual interest rate for 20 years is $300 * (1 + 0.05)^20 = $795.99, which matches option A.

Which of the Following Is the Equivalent of $300 Received