The Formula for Finding the Present Value of an Amount

question 127

Multiple Choice

The formula for finding the present value of an amount M that will be received one year from now, when the interest rate is R, is

• A) M × (1 + R/100).
• B) M × (1 + R).
• C) M / (1 + R).
• D) M / R.
• E) M / (100R).

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Definitions:

Stepfamilies

Families formed when at least one partner in a marriage or committed relationship brings children from a previous union.

Nuclear Families

consist of two parents and their biological or adopted children, living together as a single unit and considered a traditional family structure.

Stress and Conflict

Refers to the emotional and mental strain caused by discord, disagreements, or challenges in interpersonal relationships or life circumstances.

Remarriage

A subsequent marriage following the end of an earlier marital relationship through divorce or widowhood.