Write the Formula to Find the Present Value of $750

question 19

Short Answer

Write the formula to find the present value of $750 to be paid in 5 years if the interest rate is 3 percent.

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Definitions:

Outputs

The products or services generated by a business or an economic system.

Inputs

The resources, such as capital, labor, and materials, used in the production process to create goods or services.

Marginal Product

The increase in output that occurs when one more unit of a certain input is added, with all other inputs remaining the same.

Profit Maximization

The process or strategy used by businesses to determine the price and output level that leads to the highest profit.