Which,if any,of the present values below are correctly computed?
A) A payment of $1,000 to be received one year from today,with a 8 percent interest rate,has a present value of $945.45.
B) A payment of $1,000 to be received one year from today,with a 9 percent interest rate,has a present value of $911.11.
C) A payment of $1,000 to be received one year from today,with a 10 percent interest rate,has a present value of $905.06.
D) None of the above are correct to the nearest cent.
Correct Answer:
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