The present value (PV) of a payment n years in the future (FV), given an interest rate (r), is given by the equation: A)PV = FVⁿ. B)PV = 1 / FVⁿ. C)PV = FV / (1 + r). D)PV = FV / (1 + r)ⁿ.

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The present value (PV) of a future payment (FV) is calculated by discounting it back to the present using the formula PV = FV / (1 + r)^n, where r is the interest rate and n is the number of years.

The Present Value (PV) of a Payment N Years in the Future