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9 June, 01:44

How much is $100 to be received in exactly one year worth to you today if the interest rate is 20 %?

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  1. 9 June, 02:16
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    Final Value = $120

    Explanation:

    Giving the following information:

    How much is $100 to be received in exactly one year worth to you today if the interest rate is 20 %.

    We need to calculate the future value of the principal and the compounded interest:

    FV = PV * (1+i) ^n

    FV = 100*1.20^1 = $120
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