Question: 2. It is a fact that (1 + 0.12)3 = 1.40. Knowing that to be true, what is the present value of $140 received in

2. It is a fact that (1 + 0.12)3 = 1.40. Knowing that to be true, what is the present value of $140 received in three years if the annual interest rate is 12 percent? LO17.2

a. $1.40.

b. $12.

c. $100.

d. $112.

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