Concerning the present value

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Which of the following statements are correct concerning the present value of $1.00 five years from today discounted at 5%? I. The present value is equal to $1.00 divided by 1.05 to the 5th power. II. If the discount rate were less than 5%, the present value would be smaller. III. If the discount rate were more than 5%, the present value would be smaller. IV. If the $1.00 were to be received 6 years from today, the present value would be larger.

Reference no: EM131461224

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