The interest rate, i, which we use to calculate present value, is often referred to as the
A) discount rate.
B) multiplier.
C) compound rate.
D) dividend.

Name: The interest rate, i, which we use to calculate present value, is often referred to as the A) discount rate. B) multiplier. C) compound rate. D) dividend.
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Question

Quizplus · Accepted Answer

The interest rate used to calculate present value is referred to as the discount rate because it is used to discount future cash flows back to their present value.

The Interest Rate, I, Which We Use to Calculate Present