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

question 6

Multiple Choice

If the annual interest rate is i,the present value of $X to be received at the end of each of the next n years is:

• A) $X/i.
• B) $X/(1 + i)ⁿ.
• C) \( \$ X \sum_{t=1}^{n} 1 /(1+i)^{t} \)
• D) $X[(1 + i)ⁿ] / [ i(1 + i)ⁿ - 1].
• E) $X / [i(1 + i)ⁿ - 1].

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Definitions:

Productivity

A measure of the efficiency of production, often expressed as the ratio of outputs produced to inputs used.

Hourly Wage

The hourly wage an employee receives for their work.

Equilibrium Purchase Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied by producers.

Marginal Product

The boost in production resulting from one more unit of input, while keeping other inputs unchanged.