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
Did toilet paper cause a change in supply or quantity
Answers (1)
Alana lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produce and sell to another country. What type of situation does this describe?
Answers (1)
At the end of the year, Marline Corporation determines that its ending inventory has a cost of $2,000 and a net realizable value of $1,900.
Answers (1)
Which career professional would be considered part of the human resources pathway of the business, management, and administration career cluster?
Answers (1)
Andy's candy purchased equipment for $35,000. sales tax on the purchase was $3,500. other costs incurred were freight charges of $940, and installation costs of $1,120. what is the cost of the equipment?
Answers (1)
New Questions in Business
Lewis Inc. had the following information taken from various accounts for 2015: Sales Discounts $41,000 Unearned Revenue $32,000 Total Sales $459,000 Purchase Discounts $15,000 Sales Allowances $35,000 Accounts Receivable $205,000 What was Lewis Inc.
Answers (1)
True or False: The basic economic theory of supply and demand suggests that when price drops, consumers will buy more and thus generate stronger demand.
Answers (1)
If you think carefully about what you're doing, always ask for advice when you need it, and keep asking questions, starting a business can be
Answers (2)
16. What size paper should you use for a legal document? A. 3" x 5" B. 8/2" x 11" C. 872" x 14" D. 74" x 1072"
Answers (2)
Assume an economy where there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 30 million bushels of wheat of which 25 million bushels are sold to the bread producer at $3 per bushel, and 5 million
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?