What is the present value of $888 in one year if the current rate of interest is five per cent?
A) $4440
B) $845.71
C) $177.60
D) None of the above

Question

Quizplus · Accepted Answer

To calculate the present value, we need to use the formula: 
Present value = Future value / (1 + interest rate) 
So, substituting the values: 
Present value = $888 / (1 + 0.05) 
Present value = $845.71 (rounded to 2 decimal places)

Therefore, the correct answer is B.

What Is the Present Value of $888 in One Year