The Present Value of a Future Sum of Money Is

question 72

Multiple Choice

The present value of a future sum of money is the amount that,if invested today,will grow

• A)as large as that future sum,given the interest rate.
• B)as large as that future sum,if the time period is equal to one year.
• C)as large as that future sum,less taxes payable.
• D)as large as that future sum,if the rate of interest is zero.
• E)at a constant rate forever.

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Definitions:

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