If the interest rate is 5 percent,what is the present value of $10 received one year from now?
A) $9.50
B) $10.05
C) $9.52
D) $9.77

Name: If the interest rate is 5 percent,what is the present value of $10 received one year from now? A) $9.50 B) $10.05 C) $9.52 D) $9.77
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Question

Quizplus · Accepted Answer

The present value formula is PV = FV / (1 + r), where PV is the present value, FV is the future value, and r is the interest rate. Applying the formula, PV = 10 / (1 + 0.05) = 9.52. Thus, the best choice is C.

If the Interest Rate Is 5 Percent,what Is the Present