What Is the Present Value of $100 Promised One Year

question 47

Multiple Choice

What is the present value of $100 promised one year from now at 10% annual interest?

• A) $89.50
• B) $90.00
• C) $90.91
• D) $91.25

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Definitions:

Companionship

A close relationship between individuals where friendship, emotional support, and sometimes physical closeness are provided and received.

Income

Money received, especially on a regular basis, for work or through investments.

Physically Close

Proximity in space, being near to someone or something in distance.

Emotionally Close

A state of being deeply connected to another person on an emotional level.