If 'P' be the present value ' \( P_T \) ' the present value of future return, 'T' the time of cash flow, 'i' the discount rate per annum then which…
Class 12 Business Mathematics · 2079 · Solved Question with Answer
If 'P' be the present value '\( P_T \)' the present value of future return, 'T' the time of cash flow, 'i' the discount rate per annum then which of the following is applied to find the present value of future return.
a) \( P = \frac{P_T}{(1+i)^T} \)
b) \( P = \frac{P_T}{(1-i)^T} \)
c) \( P_T = \frac{P}{(1+i)^T} \)
d) \( P_T = \frac{P}{(1-i)^T} \)