Which of the Following Formulas Is CORRECT for Finding the Present

question 79

Multiple Choice

Which of the following formulas is CORRECT for finding the present value of an investment?

• A)FV = \(\frac { \text { PV } } { ( 1 + r ) ^ { n } }\)
• B)PV = FV × (1 + r)ⁿ
• C)PV = FVⁿ × (1 + r)
• D)PV = FV × \(\frac { 1 } { ( 1 + r ) ^ { n } }\)

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Definitions:

Expected Marginal Cost

The anticipated cost of producing one additional unit of a good or service, taking into account all relevant factors and future circumstances.

Expected Marginal Benefit

is the anticipated additional benefit or utility obtained from consuming one more unit of a good or service.

Rational Decision Maker

An individual or entity that makes decisions by systematically considering the available information, alternatives, and potential outcomes.

Economic Theory

A set of principles and methodologies that economists use to understand, explain, and make predictions about economic processes and behaviors.