What is the present value of a payment of $250 one year from today if the interest rate is 4 percent?
A) $240.38
A) None of the above are correct to the nearest cent.
B) $242.24
C) $244.40

Name: What is the present value of a payment of $250 one year from today if the interest rate is 4 percent? A) $240.38 A) None of the above are correct to the nearest cent. B) $242.24 C) $244.40
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Question

Quizplus · Accepted Answer

PV = FV / (1 + r)^n
PV = $250 / (1 + 0.04)^1
PV = $240.38 (rounded to the nearest cent)

What Is the Present Value of a Payment of $250