The Present Value of Receiving M Dollars Two Years from Now

question 92

Multiple Choice

The present value of receiving M dollars two years from now when the prevailing interest rate is i is equal to

• A) M - i²
• B) M \(\times\) i²
• C) M/i
• D) M/(1 - i)
• E) M/(1 + i)²

---

Definitions:

Mobile App

A software application developed specifically for use on small, wireless computing devices, such as smartphones and tablets, rather than desktop or laptop computers.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields, including copyrights, patents, and trademarks.

Collective

A group or system that works together as a whole, often implying shared responsibilities or activities.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.