Asked by
Malik Stewart
on Dec 12, 2024
Verified
If the interest rate is 7 percent, what is the current value of $80 to be received one year from now?
A) $47.05
B) $74.77
C) $85.60
D) $136
Current Value
The present monetary or market worth of an asset or investment.
Interest Rate
The cost of borrowing money, expressed as a percentage of the total amount loaned, paid by borrowers to lenders.
- Ascertain the current valuation of future financial inflows at assorted rates of interest.
Verified Answer
SK
Learning Objectives
- Ascertain the current valuation of future financial inflows at assorted rates of interest.