The Present Discounted Value of a Future Payment Can Be

question 58

Multiple Choice

The present discounted value of a future payment can be calculated using which of the following formulas?

• A)[(1 + Interest rate)^N] ÷ (Current payment).
• B)(Current payment)÷ [(1 + Interest rate)^N].
• C)[(1 + Interest rate)^N] ÷ (Future payment).
• D)(Future payment)÷ [(1 + Interest rate)^N].

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