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Author Question: The present value of 475 received 3 years in the future would be calculated as which of the ... (Read 123 times)

jessicacav

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on: Jun 29, 2018
The present value of 475 received 3 years in the future would be calculated as which of the following when the interest rate is 6 percent?
 
  A) 475  1.6  3 B) 475/(1.6)3 C) 475/(1.06)3 D) 3.06/475

Question 2

If you want to know the present value of a future payment received in one year, what formula can you use?
 
  A) Present value equals future payment divided by one plus the rate of interest.
  B) Present value equals future payment times the current market rate of interest.
  C) Present value equals future payments times one plus the rate of interest.
  D) Present value equals one plus the rate of interest in decimals divided by future payment.


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deja

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A


jessicacav

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

rachel

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Reply 3 on: Yesterday
Excellent

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