Which of the Following Formulae Will Calculate the Present Value

question 11

Multiple Choice

Which of the following formulae will calculate the present value of £100 received in one year's 1 time?

• A) £100 (1 +r)
• B) £100/(1+r)
• C) £100 (1+r)2
• D) £100/(1+r)2

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Definitions:

Foreclosure Rates

The percentage of properties undergoing the legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.

Complexity

The quality or state of being intricate or complicated, often referring to systems with multiple interrelated components.

Modern Societies

Refers to nations or societies that are industrialized and have a high level of development in terms of economic prosperity, technological advancement, and social organization.

Lower Class

A socioeconomic group often characterized by low income, limited educational attainment, and restricted access to resources and opportunities.