Which of the Following Is the Correct Expression for Finding

question 233

Multiple Choice

Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent?

• A)$1,000 × (1.06)
• B)$1,000⁽¹.⁰⁶⁾
• C)$1,000/(1.06)
• D)None of the above is correct.

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Definitions:

Fair Rate

A reasonable, equitable interest rate or charge for a loan or service, ensuring fairness to both the provider and the consumer.

Missing Value

A term used in statistics and data analysis indicating data points or information that is not recorded or is unavailable.

Scheduled Payments

Predetermined amounts of money paid at regular intervals, often part of a repayment plan for loans or mortgages.

Compounded Semi-annually

Interest on an investment is calculated twice a year and added to the principal, allowing the investment to grow faster than if it were compounded annually.