If X Is the Actual Amount of Income or Receipts

question 63

Multiple Choice

If X is the actual amount of income or receipts and i is the interest rate (in decimals) that could be earned on alternative uses of money that face the same risk, the present value of X in t years from now is computed by

• A)(i^t)(1 + X).
• B)(X^t)(1 + i).
• C)i/(1 + X)^t.
• D)X/(1 + i)^t.
• E)X/(1 - i)^t .

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