what is the present value of 1 received four years from now

what is the present value of $1 received four years from now (rounded to two decimal places) if the discount rate is 12.00%? $.64 $.69 $.59 $.74 $.54

Solution

Present value = future value / ( 1 + R)ⁿ

Present value = 1 / ( 1 + 0.12)⁴

Present value = 1 / 1.573519

Present value = $0.64