Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent? A) $1,000 (1.06) B) $1,000^(1.06) C) $1,000/(1.06) D) None of the above is correct.

Question

Quizplus · Accepted Answer

The correct expression for finding the present value of a future payment is to divide the payment amount by (1 + interest rate). Therefore, the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent is $1,000/(1.06). Option A is the formula for finding the future value of a present payment, while option B is not a valid financial expression.

Which of the Following Is the Correct Expression for Finding