If You Want to Know the Present Value of $10

question 215

Multiple Choice

If you want to know the present value of $10 000 received in 1 year,and the interest rate is 4 per cent,what formula can you use?

• A) Present value equals $10 000 times 0.04.
• B) Present value equals $10 000 divided by 1.04
• C) Present value equals 1.04 divided by $10 000.
• D) Present value equals $10 000 times 1.04.

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Definitions:

Tukey Multiple Comparison Method

A statistical technique used to find the differences among group means in a situation where there are more than two groups.

Pairwise Means

The average values obtained from every possible pair of groups or treatments in a study, often used in post-hoc analysis following ANOVA.

Population Means

The average value of a particular characteristic in a population.

Normality

A property of a dataset suggesting that it follows a normal or Gaussian distribution.