Which expression is used to calculate the present value of an amount of money?
A) Future Value × (1 + interest rate) time
B) Future Value / (1 + interest rate) time
C) Future Value × (1 + time) interest rate
D) (1 + interest rate) time / Future Value
Correct Answer:
Verified
Q196: The "future value" of a sum of
Q197: The core concept that is central to
Q198: Q199: As interest rates decrease, the Q200: "Present value" refers to the Q202: A lower equilibrium interest rate Q203: Other things equal, interest rates are Q204: If the interest rate is 5 percent, Q205: Other things equal, an increase in the Q206: The pure rate of interest is approximated
A)cost of current
A)value today of
A)increases saving, reduces
A)higher on
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