Present Value What is the present value of a $200 payment made in 3 years when the discount rate is 8 percent?
A)$150.00
B)$158.77
C)$251.94
D)$515.42

Question

Quizplus · Accepted Answer

We can use the present value formula: 
PV = FV / (1+r)^n 
where PV is the present value, FV is the future value, r is the discount rate, and n is the number of years.

Plugging in the given values, we get: 
PV = 200 / (1+0.08)^3 
PV = 158.77

Therefore, the present value of the $200 payment made in 3 years at a discount rate of 8% is $158.77. The best choice is B.

Present Value What Is the Present Value of a $200