The Present Value (PV) of a Payment One Year in the Future

question 27

Multiple Choice

The present value (PV) of a payment one year in the future (FV) , given an 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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