In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time depending on the situation.T/F

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09-12-2022
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In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time depending on the situation.T/F

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qwcricket qwcricket · Answer 1 · 2022-12-17T15:44:00+01:00

In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time depending on the situation. True

An investment's present value is its value as of the current date. By utilizing the specified interest rate to discount the future value, the present value may be calculated. In a present value or future value table, the length of one time period can be interpreted as any length of time, such as one year, one month, or even one day. It depends on the context and the specific time frame being considered.

For example, if the time period is being used to represent the length of time over which an investment will be made or a loan will be repaid, it could be one year, whereas if the time period is being used to represent the length of time between payments on an annuity, it could be one month.