Which Expression Is Used to Calculate the Present Value of an Amount

question 141

Multiple Choice

Which expression is used to calculate the present value of an amount of money?

• A)Future Value × (1 + interest rate)^time
• B)Future Value / (1 + interest rate)^time
• C)Future Value × (1 + time)^{interest rate}
• D)(1 + interest rate)^time / Future Value

---

Definitions:

Placebo

is a substance or treatment with no therapeutic effect given to a participant in a study as a control to test the efficacy of another treatment, or used to elicit a psychological benefit through the belief in the treatment.

Metronome

A device used by musicians that marks time at a selected rate by giving a regular tick sound.

Meat Powder

A substance made from dried and pulverized meat, used as nutritional supplement or in cooking.

Contingency View

A management approach suggesting that organizational effectiveness stems from fitting design and operational practices to contextual factors.