None You are promised $450 one year from now.Assuming prevailing interest rates are at 4%, whatis that promise worth today?a. $430.00b. $432.69C. $96.15d. $450.00

Formula: PV = FV ÷ (1 + r)nGiven:Present value (PV) = ?Future value (FV) = $450Interest rate (r) =…

Answered: You are promised $450 one year from…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are promised $450 one year from now. Assuming prevailing interest rates are at 4%, what is that promise worth today? a. $430.00 b. $432.69 C. $96.15 d. $450.00