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11 September, 03:15

An investment paid to you in one year in the amount of $100 will be worth how much today

use FV = PV (1 + i) ^N and the answer is 85

use PV = FV / (1+r) and the answer is about 90.91

use FV = PV (1 + i) ^N and the answer is 90

use PV = FV (1+r) and the answer is about 109.91

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  1. 11 September, 03:49
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    The second choice is the right answer. We are given the future value (FV = $100), and we want to solve for PV. Finally, assuming that the interest rate is positive, and since this is only for 1 year, the future value must be higher than the present value (FV > PV). Since the fourth choice has FV PV = 90.91, so it is the only logical choice.
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Home » Business » An investment paid to you in one year in the amount of $100 will be worth how much today use FV = PV (1 + i) ^N and the answer is 85 use PV = FV / (1+r) and the answer is about 90.
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