The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.

Name: The present value of 1 formula is often useful when a borrowed asset must be repaid in full at a later date and the borrower wants to know its worth at the future date.
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Question

Quizplus · Accepted Answer

The present value of 1 formula is used to determine the current worth of a future sum of money, not its worth at a future date.

The Present Value of 1 Formula Is Often Useful When