The Formula to Calculate the Present Value of a Future

question 75

Multiple Choice

The formula to calculate the present value of a future payment is:

• A) PV = K/(K- t)ⁱ.
• B) PV = K/(1+i)^t.
• C) PV = K/(1+i)^k.
• D) PV = K/(K- i)^t.

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Definitions:

Ethnicity

A categorization of people based on shared cultural, linguistic, or ancestral traits.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people.

Job Migration

The movement of workers from one sector, region, or country to another, often in pursuit of better employment opportunities and working conditions.

Ecological Fallacy

The error that arises when conclusions about individual-level behavior are drawn from aggregate-level data, assuming that group data reflect the individual behaviors within the group.