Multiple Choice
If X is the actual amount of income or receipts and i is the interest rate (in decimals) that could be earned on alternative uses of money that face the same risk, the present value of X one year from now is computed by
A) X/(1-i) .
B) X/(1+i) .
C) i/(1+X) .
D) (X) (1 + i) .
E) (i) (1 + X) .
Correct Answer:
Verified
Correct Answer:
Verified
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