# If the Interest Rate is Zero, then $100 to be Paid in Ten Years has a Present Value, that is?

We will be using the concept and formula of simple interest to answer this.

## Answer: If the Interest Rate is Zero, then $100 to be Paid in Ten Years has a Present Value of $100.

Let's solve this step by step.

**Explanation:**

Given that, Amount (A) = $100

Interest Rate (R) = 0

Time (T) = 10 Years

We have to find the Principal (P) here.

Simple Interest Formula: A = P(1 + RT)

Where, A = Amount, P = Principal, R = Interest rate, T = time.

Substitute the values in the equation.

100 = P(1 + 0 × 10)

100 = P(1 + 0)

P = $100