PV of $100 received in 1 year at 10% discount rate:
A$110.00
B$90.91CORRECT
C$100.00
D$95.00
CFAQuantitative Methods
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Why the answer is B, and why the others tempt you.
PV = FV/(1+r)^n = 100/1.10 ≈ $90.91.
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