The Formula to Calculate the Present Value of a Future

question 25

Multiple Choice

The formula to calculate the present value of a future payment of $X received t years from now when the annual percentage interest rate is i is

• A)PV = $X/(1 + i)^t.
• B)PV = $X/i.
• C)PV = $X/(1 + i).
• D)PV = $X(1 + i)^t.
• E)PV = $X(1 + i).

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Definitions:

Tactical PR Goals

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A theoretical framework in public relations that outlines the characteristics and practices necessary for effective organizational communication.

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The practice of managing communication and relationships between organizations and their diverse publics across different countries and cultures.

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