The Formula R/(1 + R)^t, Where R Is Dollars, T

question 157

Multiple Choice

The formula R/(1 + r) ^t, where R is dollars, t is years, and r is the interest rate, is the formula for

• A) present inflated value.
• B) future value.
• C) present discounted value.
• D) future discounted value.

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Definitions:

Output

The total amount of goods or services produced by an individual or entity in a given period.

Function

In mathematics, a relation or expression involving one or more variables, where each input value yields one and only one output value.

Production Function

A mathematical model that describes the relationship between the quantity of output produced and the quantities of inputs used in production.

Returns To Scale

An economic concept describing how the output changes in response to a proportional change in all input factors.