To calculate Present Value, use the following formula:
? $$\text { Present Value } = \frac { \text { compound amount } } { ( 1 + \text { interest rate per period } ) ^ { \text {periods } } }$$ ?

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Quizplus · Accepted Answer

This formula correctly represents how to calculate the Present Value, where the compound amount is discounted back to the present value using the interest rate per period over a specified number of periods.