Which of the Following Is the Correct Expression for Finding

question 43

Multiple Choice

Which of the following is the correct expression for finding the present value of a $500 payment two years from today if the interest rate is 4 percent?

• A)$500/(1.04)²
• B)$500 - 500(1.04)²
• C)$500 - $500/(.04)²
• D)None of the above is correct.

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