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 − 500(1.06) 2
C) $500/(1.02) 6
D) $500*(1.06) 2
Correct Answer:
Verified
Correct Answer:
Verified
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