If the Annual Interest Rate Is I,the Present Value of $X

question 5

Multiple Choice

If the annual interest rate is i,the present value of $X to be received at the end of each future year forever is:

• A) $X/(1 + i).
• B) $X/i.
• C) $X/(1 + i)ⁿ.
• D) $X/i ⁿ.
• E) $Xⁿ/i ⁿ.

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