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Identify the Correct Expression for Calculating the Present Value of an Investment

Question 7

Multiple Choice

Identify the correct expression for calculating the present value of an investment.


A) Present value = Future value × (1 + r) n
B) Present value = Future value + (1 + r) n
C) Present value = Future value - (1 + r) n
D) Present value = Future value / (1 + r) n
E) Present value = Future value / ((1 + r) × n)

Correct Answer:

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