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Options
-
$200000 / (1+0.07)^5$
Correct answer
- B
$200000 * (1- 0.07)^5$
- C
$200000 / (1+0.07)*5$
- D
$200000 * (1+0.07)*5$
Why this is the answer
The formula for calculating the Present Value (PV) is: \[ PV = \frac{FV}{(1 + r)^n} \] Where: \(FV\) is the future value, \(r\) is the interest rate, \(n\) is the number of years.
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