Identify the Correct Equation for Calculating the Present Value of an Investment

question 12

Multiple Choice

Identify the correct equation for calculating the present value of an investment. (Assume 'r' stands for rate of return and 'n' stands for number of periods interest is earned.)

• 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:

Deceit

An intentional misrepresentation or concealment of a material fact made to induce another to act to their detriment.

Private Nuisance

A disturbance or interference with an individual's enjoyment or use of their property, without any trespassing occurring.

Injunction

A legal order by a court that requires a party to do, or refrain from doing, certain acts.

Nuisance

An act, condition, or thing that is illegal because it interferes with the rights of others, specifically in terms of their comfort, health, or safety.