Approximately what is the present value needed to receive $200 ten years from today, with an annual interest rate of ten percent?
A)$65
B)$77
C)$87
D)$97

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 interest rate, and n is the number of years. For $200 in 10 years at 10%, PV = 200 / (1 + 0.10)^10 = $77.11, approximately $77.

Approximately What Is the Present Value Needed to Receive $200