As a result of a court decision, XYZ Company must pay a claimant $100,000 two years from today. What is the present value of the $100,000 award that XYZ Company must pay in two years? Assume a 10 percent interest (discount) rate.

(a) $80,000
(b) $82,645
(c) $93,584
(d) $120,000

Ans: (b) $82,645

Business

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