Which one of the following is not one of the variables that is necessary to compute the present value of an amount? The discount rate The number of periods The amount to be received All of these are variables that are necessary to compute the present value of an amount
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Step 1: The present value (PV) of an amount is calculated using the formula: $PV = FV / (1 + r)^n$ where: FV = Future Value (the amount to be received) r = discount rate n = number of periods Show more…
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