Which of the following is the correct way to express the value discounting function mathematically?
A) V = M/(1 + KD)
B) M = V/(1 - KD)
C) K = M/(1 - VD)
D) D = V/(1 + KM)

Question

Quizplus · Accepted Answer

The value discounting function expresses the present value of an amount of money (M) at a certain point in time (t) as V = M/(1 + KD), where K is the discount rate and D is the number of time periods between t and the time of payment. Therefore, option A is the correct mathematical expression of the value discounting function.

Which of the Following Is the Correct Way to Express