If you want to know the present value of $10,000 received in one year,and the interest rate is 4 percent,what formula can you use?

Question

Quizplus · Accepted Answer

The formula for finding present value is PV = FV / (1+r)^n, where PV is present value, FV is future value, r is the interest rate, and n is the number of periods. In this case, the future value is $10,000, r is 4%, and n is 1 year. Plugging in these values, we get PV = $10,000 / (1+0.04)^1 = $9,615.38, which is the present value of $10,000 received in one year at a 4% interest rate. Therefore, the correct choice is B.

If You Want to Know the Present Value of $10,000