Using slightly different notation from that used in the text, the present value (PV) of a payment one year in the future (FV) , given interest rate (r) , is given by the equation:
A) PV = 1 ÷ FV.
B) PV = FV ÷ 1.
C) PV = FV ÷ (1 + r) .
D) PV = FV × (1 + r) .
Correct Answer:
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