The Present Value (PV) of a $110 Payment One Year

question 163

Multiple Choice

The present value (PV) of a $110 payment one year in the future (FV) , given a 10 percent interest rate, is:

• A) $10.
• B) $11.
• C) $100.
• D) $110.

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Definitions:

Barrier

An obstacle that prevents movement or access, or a circumstance or issue that prevents people from understanding each other or from achieving their goals.

Preoperational Period

A stage in Jean Piaget's theory of cognitive development (approximately ages 2-7) during which children begin to engage in symbolic play and struggle with logic.

Reality

The quality or state of being actual or true and the totality of all things possessing actuality, existence, or essence.

Appearance

The way in which someone or something looks or is presented to the senses.