If the Annual Interest Rate Is I,the Present Value of a Payment

question 8

Multiple Choice

If the annual interest rate is i,the present value of a payment of $X to be received n years from now forever is:

• A) $X/(1 + i).
• B) $X/i.
• C) $X/(1 + i )ⁿ.
• D) $X/i ⁿ.
• E) none of the above.

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Definitions:

Heat Produced

The amount of energy released or absorbed as heat during a chemical or physical transformation.

Aluminum

A silvery-white, soft, nonmagnetic, ductile metal in the boron group, noted for its lightweight and resistance to corrosion.

Silica Glass

A type of glass made primarily of silicon dioxide (SiO2), known for its transparency and chemical stability.

Heat Involved

The energy transfer between systems or objects with different temperatures, often involved in chemical reactions and physical processes.