The present value of $100 expected in two years from today at a discount rate of 6% is:
A) $116.64
B) $108.00
C) $100.00
D) $89.00

Name: The present value of $100 expected in two years from today at a discount rate of 6% is: A) $116.64 B) $108.00 C) $100.00 D) $89.00
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Question

Quizplus · Accepted Answer

The present value (PV) is calculated using the formula PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of periods. Here, PV = $100 / (1 + 0.06)^2 = $89.00.

The Present Value of $100 Expected in Two Years from Today