Which of the following is the calculation you should use to determine the present value of a lump sum?

Question

Quizplus · Accepted Answer

When figuring the time value of money, you should either convert present values to future values or estimate the future value of a known present value. The present value is the current worth of an asset. To figure out the present value, use the equation [(Future value)/(i+1)ⁿ], where i is the interest rate and n is the number of time periods.

Which of the Following Is the Calculation You Should Use