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with an interest rate of 8 percent, the present value of $100 received one year from now is approximately

User Ygoe
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Final answer:

The present value of $100 received one year from now with an 8 percent interest rate is approximately $92.59. This is calculated using the present value formula which accounts for the time value of money.

Step-by-step explanation:

The question asks for the present value of $100 received one year from now with an 8 percent interest rate. To calculate the present value, we use the formula for present value which is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

In this case, FV is $100, r is 0.08 (8 percent as a decimal), and n is 1 because it's one year from now. This gives us:

PV = $100 / (1 + 0.08)^1

PV = $100 / 1.08

PV = approximately $92.59

Therefore, the present value of $100 received one year from now at an 8 percent interest rate is approximately $92.59.

User Venkata Jaswanth
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