Which of the Following Is the Correct Expression for Finding

question 201

Multiple Choice

Which of the following is the correct expression for finding the present value of a $500 payment two years from today if the interest rate is 6 percent?

• A) $500/1.06)2
• B) $500 - 5001.06)2
• C) $500/1.02)6
• D) None of the above is correct.