Ask Question
BusinessBusiness
14 August, 18:13

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

+4
Answers (1)
  1. 14 August, 18:18
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Chen Inc.'s cash balance in the accounting records, before receiving the bank statement, at June 30th was $16,170. During June the company recorded $10,000 of deposits but the bank only showed $7,900 on the June statement.
Answers (1)
The cti is an instrument used to evaluate dysfunctional thinking and is interpreted using what scales?
Answers (1)
If a person receives a paycheck for $600.00 and the government takes $200.00 in income taxes, it is a result of which amendment?
Answers (1)
For the united states, suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent.
Answers (1)
If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should this error be treated on the bank reconciliation?
Answers (1)
New Questions in Business
What are the order of in which management can take legal action against a employee
Answers (1)
What best describes an entrepreneur? a. Someone who initiates and assumes the financial risk of a new business enterprise. b. A person who knows how to evaluate which stocks to purchase. c. Someone who can expertly manage other people's investments.
Answers (1)
JRN Enterprises just announced that it plans to cut its dividend from $3.50 to $2.50 per share and use the extra funds to expand its operations.
Answers (1)
Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate.
Answers (1)
Appalachian mountain goods has paid increasing dividends of $.10, $.12, $.15, and $.20 a share over the past four years, respectively.
Answers (1)
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.
Sign Up Forgot Password?