What Is the Present Value of a Payment of $100

question 187

Multiple Choice

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?

• A)$95.50
• B)$95.24
• C)$95.00
• D)None of the above are correct to the nearest cent.

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Definitions:

Private Property

An ownership model where the possession of land, resources, or items is vested in individuals or organizations, distinct from public or state ownership.

Will

A document executed with specific legal formalities that contains a person’s instructions about the disposition of his property at his death.

Transferred

In the context of property or legal rights, refers to the act of moving ownership, authority, or responsibility from one party to another.

Validly Executed

A legal term indicating that a document has been signed and carried out according to the required legal formalities.