Which One of the Following Is the Correct Formula for Computing

question 44

Multiple Choice

Which one of the following is the correct formula for computing the present value of $600 to be received in 6 years? The discount rate is 7 percent.

• A)PV = $600 (1 + .06)⁷
• B)PV = $600 (1 + .07)⁶
• C)PV = $600 × (.07 × 6)
• D)PV = $600/(1 + .07)⁶
• E)PV = $600/(1 + 6)^.07

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Definitions:

Hydrophilic

Type of molecule, often polar, that interacts with water by dissolving in water and/or by forming hydrogen bonds with water molecules.

Phospholipids

A type of lipid molecule that forms the main structure of cell membranes, composed of two fatty acids, a phosphate group, and a glycerol molecule.

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, regulating the passage of substances in and out of the cell.

Protein Synthesis

A cellular process involving the assembly of amino acids into proteins based on the sequence of nucleotides in messenger RNA.