To determine the present value of any future amount, you need to know all of the following except?
A)the interest rate.
B)the future amount to be received.
C)the preference decision.
D)when the future amount will be received.

Question

Quizplus · Accepted Answer

The preference decision is not necessary to determine the present value of a future amount. The other three factors (interest rate, future amount, and time of receipt) are essential in calculating present value.

To Determine the Present Value of Any Future Amount, You