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Derrick Warren
on Dec 12, 2024

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If the interest rate is 7 percent, what is the present value of $100 received two years from now.

A) $107
B) $114.49
C) $87.34
D) $93.45

Present Value

The contemporary valuation of an anticipated sum of money or cash flow sequence, based on a given return rate.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

  • Determine the present value of forthcoming cash streams under different interest rates.
  • Gain insight into the relationship between interest rate adjustments and the present worth of future cash flows.
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Abbey BoteroDec 18, 2024
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