Identify the Correct Expression for Calculating the Present Value of an Investment

question 7

Multiple Choice

Identify the correct expression for calculating the present value of an investment.

• A) Present value = Future value × (1 + r)n
• B) Present value = Future value + (1 + r)n
• C) Present value = Future value - (1 + r)n
• D) Present value = Future value / (1 + r)n
• E) Present value = Future value / ((1 + r) × n)