Mathematical Modeling: Financial Mathematics and Economics

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Multiple Choice

What is the formula for the present value of a single sum?

  1. PV = FV / (1 + r)^n
  2. PV = FV * (1 + r)^n
  3. PV = FV / (1 - r)^n
  4. PV = FV * (1 - r)^n
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