Question

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Part 1
If the interest rate is 11 ​percent, the present value of ​$150 paid one year from now equals ​$enter your response here ​(round your answer to the nearest penny​).

Answer 1

The present value of $150 paid one year from now with an 11% interest rate is $135.14 (rounded to the nearest penny).

Step-by-step explanation:

To calculate the present value of $150 paid one year from now with an 11% interest rate, we can use the formula:

Present Value = Future Value / (1 + Interest Rate)

Substituting the given values, we get:

Present Value = $150 / (1 + 0.11)

= $150 / 1.11

= $135.14

Therefore, the present value of $150 paid one year from now with an 11% interest rate is $135.14 (rounded to the nearest penny).