The interest rate used in present value calculations is called the
A)discount rate.
B)preference rate.
C)compound rate.
D)screening rate.

Name: The interest rate used in present value calculations is called the A)discount rate. B)preference rate. C)compound rate. D)screening rate.
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Question

Quizplus · Accepted Answer

The interest rate used in present value calculations is commonly referred to as the discount rate. This is because it represents the amount by which future cash flows are discounted to their present value.

The Interest Rate Used in Present Value Calculations Is Called