Question

In: Finance

If the annual interest rate is 0 percent, the present value of receiving $210 in the...

If the annual interest rate is 0 percent, the present value of receiving $210 in the next year is:

Multiple Choice

  • $221.

  • $200.

  • $201.

  • $210.

Solutions

Expert Solution

PV = FV / (1 + r)^t

PV = $210 / (1 + 0)^1

PV = $210   


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