Assuming R Is the Interest Rate, to Compute the Present

question 200

Multiple Choice

Assuming r is the interest rate, to compute the present value of a dollar to be received a year from today, you

• A) multiply the dollar by r.
• B) divide the dollar by (1 - r).
• C) multiply the dollar by (1 + r).
• D) divide the dollar by (1 + r).

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Definitions:

Latin American

Pertains to countries in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

Accounts Receivable

Amounts owed to a business by customers for goods or services provided on credit.