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How much is ​$100 to be received in exactly one year worth to you today if the interest rate is 20​%?
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How much is ​$100 to be received in exactly one year worth to you today if the interest rate is 20​%?

User Eduardo Brites
by
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1 Answer

5 votes

Answer:

Final Value= $120

Step-by-step explanation:

Giving the following information:

How much is ​$100 to be received in exactly one year worth to you today if the interest rate is 20​%.

We need to calculate the future value of the principal and the compounded interest:

FV= PV*(1+i)^n

FV= 100*1.20^1= $120

User Tanner Burton
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5.0k points
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