The Question "What Is the Current Value of an Amount $\frac { FV } { ( 1 + r ) ^ { n } }$

question 95

Multiple Choice

The question "What is the current value of an amount of cash that will be received at a specific time in the future?" is best answered by which form of the TVM equation?

• A)PV = \(\frac { FV } { ( 1 + r ) ^ { n } }\)
• B)PV = PV × (1 + r)ⁿ
• C)PV = (FV/PV)^1/n - 1
• D)PV = \(\frac { \ln ( \mathrm { FV } / \mathrm { PV } ) } { \ln ( 1 + \mathrm { r } ) }\)

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