What is most nearly the present worth of a $100 annuity over a 10-year period if the interest rate is 8%? a. $450 b. $530 c. $670 d. $700 | Homework.Study.com (2024)

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Business Finance Net present value

Question:

What is most nearly the present worth of a $100 annuity over a 10 year period if the interest rate is 8%?

a. $450

b. $530

c. $670

d. $700

Present Worth:

The existing value of an investment or a cash-flow whose benefit is likely to arise in the future is known as present worth. It is usually used to compare available substitutes and is very useful to investors.

Answer and Explanation:1

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Present worth of $100 annuity over a 10 year period is c. $671.

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  • The amount of the annuity is $100.
  • The time period is 10 years.
  • The...

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What is most nearly the present worth of a $100 annuity over a 10-year period if the interest rate is 8%? a. $450 b. $530 c. $670 d. $700 | Homework.Study.com (1)

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How to Calculate Present Value of an Investment: Formula & Examples

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Chapter 24/ Lesson 15

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Calculating the present value of an investment tells how much money needs to be saved now in order to reach a desired, future amount. Explore the definition of and formula for the present value of an investment, and see examples.

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What is most nearly the present worth of a $100 annuity over a 10-year period if the interest rate is 8%? a. $450  b. $530  c. $670 d. $700 | Homework.Study.com (2024)
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