Question

If i is the interest rate and X is the number of dollars to be received after t years, the formula to calculate the present value of a future payment is____________.

Answer 1

Answer:

$PV = \frac{X}{(1 + i)^{t} }$

Explanation:

The formula is the present value formula for a single payment (X) expected in the future (at time t), given an interest rate of i.

$PV = \frac{X}{(1 + i)^{t} }$