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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Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy.

Petroleum

A naturally occurring, yellowish-black liquid found beneath the Earth's surface, used primarily as a fuel source in its refined form.

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Energy that is produced and sold for profit, including fossil fuels, nuclear, and renewable energy sources used in industrial, commercial, and residential settings.

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