The prize for winning the first place in Oracle Open was $165 in 1911. The prize was $1,580,000 in 2015. Assuming the same annual increase in the value of prize over time, the prize will be in 2056? O $20,215,278.62 O$25,016,407.29 $20,526,282.91 O $17,789,445.19 $22,236,806.48

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.