To Find the Present Value of a Single Amount,you Only

question 26

True/False

To find the present value of a single amount,you only need to know the amount to be received in the future,the interest rate and the number of periods until the amount will be received.With these three elements you can compute present value.

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Definitions:

Financing

The act of financing commercial operations, procuring items, or placing capital into investments.

Loan Payment

A payment made by a borrower to a lender, consisting of both principal and interest, on a borrowed sum.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done four times a year.

Withdraw

The process of withdrawing money from an account, investment, or deposit.