The present value of $100 to be received 10 years from today,assuming an opportunity cost of 9 percent,is approximately ________.
A)$237
B)$190
C)$42
D)$10

Name: The present value of $100 to be received 10 years from today,assuming an opportunity cost of 9 percent,is approximately ________. A)$237 B)$190 C)$42 D)$10
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Question

Quizplus · Accepted Answer

PV = FV / (1 + r)t
PV = 100 / (1 + 0.09)10
PV = 42.22
Rounding down to the nearest dollar, the present value is approximately $42. Therefore, the best choice is C.

The Present Value of $100 to Be Received 10 Years