- 1 Marks
Question
Assuming a 5% time preference rate, what is the present value of N12,000 received one year from now?
A. N11,428.80
B. N11,539.90
C. N12,428.80
D. N12,539.90
E. N13,528.80
Answer
A. N11,428.80
Explanation:
To calculate the present value (PV), we use the formula:
- Tags: Financial Calculations, Present Value, Time Preference Rate
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2020
- Uploader: Dotse