The Present Value of Receiving $200 One Year from Now

question 108

Multiple Choice

The present value of receiving $200 one year from now when the prevailing rate of interest is 8 percent is

• A)$192
• B)$185.19
• C)$200
• D)$208
• E)$160

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Issued Capital

The total value of a company's shares that have been sold to shareholders and are currently outstanding.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Consultation Fee

A fee charged by experts to provide advice or services in their field of expertise.