What Is the Present Value of a Payment of $1,000

question 188

Multiple Choice

What is the present value of a payment of $1,000 two years from now if the interest rate is 6%?

• A)$2,000/1.06
• B)$1000/(1.06)²
• C)$1000/(1 + 0.06²)
• D)None of the above are correct.

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Definitions:

COUNT(range)

A function in Excel that returns the number of cells containing numbers within a specified range.

Cells

The basic structural, functional, and biological unit of all known living organisms; or in another context, individual boxes in a spreadsheet or table.

AND(condition 1,condition 2…)

A logical operator that returns true if all specified conditions are true, widely used in programming and mathematical logic.

Statistical Methodology

The collection of methods and practices used in collecting, analyzing, interpreting, and presenting data in statistical research.