Which of the Following Statements Is True

question 24

Multiple Choice

Which of the following statements is true?

• A) Present value calculations involve converting the initial amount into a future amount.
• B) The present value (PV) is often called the compounded value of future cash payments.
• C) The present value is calculated by using the discount factor.
• D) The future value of an investment is the reciprocal of its present value.

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Definitions:

Metabolism

The biochemical processes that occur within a living organism to maintain life, involving the production and use of energy.

Organization

The arrangement of elements and resources in a structured and coordinated manner to achieve desired objectives.

Reproduction

The biological process by which new individual organisms are produced from their parents.

Growth

The process of increasing in size, a vital process of living organisms and cells.