Assuming a discount rate of 10%,the present value of $1,000 received one year from now is
A)$1,100.00.
B)$1,900.00.
C)$909.09.
D)$990.00.

Question

Quizplus · Accepted Answer

The formula for present value is: 
PV = FV / (1 + r)^n 
where PV is present value, FV is future value, r is the discount rate, and n is the number of periods. 
Plugging in the given values, we get: 
PV = 1,000 / (1 + 0.1)^1 = $909.09 
Therefore, the best choice is C.

Assuming a Discount Rate of 10%,the Present Value of $1,000