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If the Annual Interest Rate Is I,the Present Value of a Payment

Question 8

Multiple Choice

If the annual interest rate is i,the present value of a payment of $X to be received n years from now forever is:


A) $X/(1 + i) .
B) $X/i.
C) $X/(1 + i ) n.
D) $X/i n.
E) none of the above.

Correct Answer:

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