If the interest rate is 10%,what is the present discounted value of receiving $100 two years from now?

Question

Quizplus · Accepted Answer

The formula for present value is: 
Present Value = Future Value / (1 + r)^n 
 where r is the interest rate and n is the number of periods. 
Plugging in the numbers, we get: 
Present Value = 100 / (1 + 0.1)^2 
Present Value = 100 / 1.21 
Present Value = $82.64 
Therefore, the best choice is C, $82.64.

If the Interest Rate Is 10%,what Is the Present Discounted