Which of the Following Is the Formula to Calculate the Discounted

question 7

Multiple Choice

Which of the following is the formula to calculate the discounted value of a single payment received in the future?

• A) FV ÷ (1 + i)ⁿ
• B) PV  (1 + i)ⁿ
• C) FV  (1 - (1 ÷ (1 + i)ⁿ) ÷ i
• D) PV  ((1 + i)ⁿ - 1) ÷ i

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Definitions:

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