The Present Value of a Future Sum of Money Is

question 295

Multiple Choice

The present value of a future sum of money is the amount that, if invested today, will grow

• A) as large as that future sum, given the interest rate.
• B) at a constant rate forever.
• C) as large as that future sum, less taxes payable.
• D) as large as that future sum, if the interest rate is zero.

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