The Present Value Equation Is

question 3

Multiple Choice

The present value equation is:

• A) PV = FVt + (1 + r)t.
• B) PV = FVt - (1 + r)t.
• C) PV = FVt/[1/(1 + r)t].
• D) PV = FVt/(1 + r)t.
• E) PV = FVt * (1 + r)t.

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Definitions:

Stop-payment Order

A request made to a bank by an account holder not to pay out on a check or payment that has been issued but not yet processed.

Reimburse

To pay back or compensate someone for expenses they have incurred.

Recourse

A legal means to seek enforcement of or redress for an obligation, right, or injury.

Stop-payment Order

An instruction to a bank not to process or honor a check or payment previously issued by the account holder.