What is the present value of a payment of $100 to be made one year from today?
A) $100*(1 + r)
B) $100/(1 + r)
C) $100 - $100 r
D) $100 - (1 + r)/$100

Name: What is the present value of a payment of $100 to be made one year from today? A) $100*(1 + r) B) $100/(1 + r) C) $100 - $100 r D) $100 - (1 + r)/$100
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Question

What is the present value of a payment of $100 to be made one year from today?
A) $100*(1 + r) 
B) $100/(1 + r) 
C) $100 - $100 r 
D) $100 - (1 + r)/$100

Quizplus · Accepted Answer

The present value formula for a single payment is PV = FV/(1+r). In this case, FV is $100 and r is the interest rate. Therefore, the present value would be $100/(1+r).

What Is the Present Value of a Payment of $100