Using Slightly Different Notation from That Used in the Text

question 75

Multiple Choice

Using slightly different notation from that used in the text, the present value (PV) of a payment one year in the future (FV) , given interest rate (r) , is given by the equation:

• A) PV = 1 ÷ FV.
• B) PV = FV ÷ 1.
• C) PV = FV ÷ (1 + r).
• D) PV = FV × (1 + r).

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Definitions:

Positive Emphasis

Focusing on positive aspects in communication to create a favorable impression or outcome.

Misused

Refers to something being used in the wrong way or for the wrong purpose.

Reputation

The beliefs or opinions that are generally held about someone or something's character or quality.

Positive Emphasis

Focusing communication on positive elements and constructive outcomes rather than negative aspects.