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What Is the Present Value of a Payment of $1,000

Question 248

Multiple Choice

What is the present value of a payment of $1,000 two years from now if the interest rate is 6%?

A) $2,000/1.06
B) $1000/1.06) 2
C) $1000/1 + 0.062)
D) None of the above are correct.

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