The present value of a single sum is Select one A The amount

The present value of a single sum is: Select one: A. The amount that would be paid today to receive a single amount at a specified date in the future B. The amount that would be paid today to receive a single amount at an unspecified date in the future C. The amount that would be paid at a specified date in the future to receive a single amount today D. The amount that would be paid at an unspecified date in the future to receive a single amount today E. None of the above

Solution

The present value of a single sum is: Select one: A. The amount that would be paid today to receive a single amount at a specified date in the future

Option b and d are incorrect as date is unspecified so present value cannot be computed.

Option c is incorrect as present value is the value paid today and not at a future date..