What is the present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent?

Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value ($104.25), r is the interest rate (4.25%), and n is the number of periods (1 year). Plugging in the values gives PV = $104.25 / (1 + 0.0425) = $100.

What Is the Present Value of $104