What is the present value of money of a $10,000 expenditure that you will spend one year from now if money is worth 14%?

Options
- $2630
- $8770
- $1600
- $8600

CORRECT ANSWER : $8770

Discussion Board
Software testing

Answer: $8770
Solution: To calculate the present value of money we use an equation PV = FV * (1+i) -1
PV = Present value, FV = Future Value, i = interest rate.
PV = 10000 * (1+.14) -1 = $8770.
Therefore, $8770 is the correct answer.


Rohit Srivastava 07-28-2014 06:11 AM

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