If You Want to Know the Present Value of a Future

question 70

Multiple Choice

If you want to know the present value of a future payment received in 1 year,what formula can you use?

• A) Present value equals future payment times the current market rate of interest
• B) Present value equals future payment divided by one plus the rate of interest.
• C) Present value equals one plus the rate of interest in decimals divided by future payment.
• D) Present value equals future payments times one plus the rate of interest.

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Definitions:

Professional Management

The managerial process conducted by an individual or a team who are trained and skilled in planning, execution, and supervision of business operations.

Delegation

The process of assigning responsibility and authority to someone else to carry out specific activities, while the person delegating retains overall responsibility for the outcome.

Management Techniques

Methods and strategies used by leaders and managers to increase efficiency, effectiveness, and to achieve organizational goals.

Takeoff Stage

A phase in economic development or in the growth of a business when rapid growth is initiated, often following a period of investment or innovation.