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When Using the Formula PV = K/(1+i)t to Calculate the Present

Question 26

Multiple Choice

When using the formula PV = K/(1+i) t to calculate the present value of a future payment, t represents:


A) the real interest rate.
B) the nominal interest rate.
C) the number of periods in the future that the future payment is received.
D) the present value.

Correct Answer:

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