Which one of the following variables is the exponent in the present value formula?

A. Present Value
B. Interest Rate
C. Number of time periods
D. Future Value
E. There is no exponent in the present value formula

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The Correct Answer for the given question is option C. Number of time periods

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Answer Explanation for Question: Which one of the following variables is the exponent in the present value formula?

The formula to calculate present value is:

Present Value = FV/ (1+i)^n

Where,

FV= Face Value

r = Rate of return

n = number of time periods

Therefore, number of time period is the exponent in the present value formula.

Which of the following is a present value method of analyzing capital investment proposals?

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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.

I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,

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Which one of the following variables is the exponent in the present value formula?