Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent?
A) $1,000 1.06)
B) $1,0001.06)
C) $1,000/1.06)
D) None of the above is correct.

Question

Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent?
A) $1,000 1.06) 
B) $1,0001.06) 
C) $1,000/1.06) 
D) None of the above is correct.

Quizplus · Accepted Answer

The formula to find the present value of a future payment is: Present Value = Future Value / (1 + Interest Rate)^Time Period

Substituting the given values, we get:
Present Value = $1,000 / (1 + 0.06)^1
Present Value = $943.40 (rounded to two decimal places)

Therefore, the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent is option C, which simplifies to $943.40.

Which of the Following Is the Correct Expression for Finding