The present value interest factor is calculated as:
A) 1/(1 + r - t)
B) 1/(1 + rt)
C) 1/(1 + r)(t)
D) 1/(1 + r)t
E) 1 + r + t

Name: The present value interest factor is calculated as: A) 1/(1 + r - t) B) 1/(1 + rt) C) 1/(1 + r)(t) D) 1/(1 + r)t E) 1 + r + t
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Question

Quizplus · Accepted Answer

The present value interest factor is calculated as 1/(1 + r)t, where r is the interest rate and t is the number of time periods. Option D is the only choice that matches this formula.

The Present Value Interest Factor Is Calculated As