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At a Discount Rate of 5 Percent,which One of the Following

Question 68

Multiple Choice

At a discount rate of 5 percent,which one of the following is the correct formula for computing the PV of $1 to be received one year from today?

A) $1/1.05
B) $1
C) $1 × 1.05
D) $1 × 1.05²
E) $1/1.05²

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