Which one of the following variables is the exponent in the present value formula?
A)present value.
B)future value.
C)interest rate.
D)time.
E)There is no exponent in the present value formula.

Question

Quizplus · Accepted Answer

In the present value formula, the exponent is the time variable. The formula is PV = FV/(1+r)^t, where t is the time (in years) and is raised to the power of the interest rate plus one (1+r).

Which One of the Following Variables Is the Exponent in the Present