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)

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Definitions:

Louisiana Purchase

The acquisition of the Louisiana territory by the United States from France in 1803, significantly expanding the size of the nation.

Executive Power

The authority to implement and enforce laws, typically vested in a president or prime minister in a governmental system, including responsibilities ranging from military command to diplomatic relations.

Chesapeake Area

A region in the United States that encompasses parts of Virginia and Maryland, notable for its history as a hub for tobacco farming and slavery in the colonial era.

Federalists

A political group in the early United States that advocated for a strong federal government and supported the ratification of the U.S. Constitution.