Which of the following is the correct expression for finding the present value of a $1,000 payment one year from today if the interest rate is 6 percent? A)$1,000 (1.06) B)$1,000^(1.06) C)$1,000/(1.06) D)None of the above is correct.

Question

Quizplus · Accepted Answer

The correct expression for finding the present value of a future payment is to divide the future value by (1 + interest rate) to the power of the number of periods. In this case, we only have one period (one year), so the expression is $1,000/(1.06). This gives a present value of $943.40.

Which of the Following Is the Correct Expression for Finding