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QUESTION 34 The value today of a specific sum of money to be received in the future is referred to as the present value of th
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Answer #1

Answer :- Option "a" is the correct Answer

The value today of a specific sum of money to be received in the future is referred to as the present value of that sum of money.

Present value refers to the value today of a specific amount of money to be received in the future.

Formula for Present value;

PV= FV/(1+i)^t, where

FV = Future value : The value that an amount today will be worth at a certain point in the future.

i = Intrest rate

t = time period

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