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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Definitions:

Physiological State

The condition of the body at a given time, including aspects such as temperature, heart rate, and hormone levels.

Motivational State

The internal condition that activates and directs behavior towards achieving specific goals, influenced by desires, needs, and ambitions.

Homeostasis

The ability of an organism to maintain internal equilibrium by adjusting its physiological processes.

Drive-Reduction Theory

A psychological theory that posits motivation is based on the goal of eliminating uncomfortable internal states caused by unmet needs.