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Which of the following is not needed to compute the present value of an​ investment?

A.

The length of time between the investment and future receipt

B.

The amount of the receipt

C.

The interest rate

D.

The rate of inflation

Sagot :

Option D - The rate of inflation is not needed to compute the present value of an​ investment.

The rate during which price rises over a specific time period is known as inflation. Inflation is typically quantified in broad terms, including the total rise in prices or even the rise in a country's economic cost of living. Within a week of expanding by 7.9 percent throughout February 2021 and February 2022, the Inflation Rate surged by 8.5% for the year that ended in March 2022. The cost increase of the plurality of daily or popularly used services and goods such like cuisine, housing, accommodation, recreation, transportation, consumer staples, etc., is referred to as inflation. A basket of items & services is used to determine inflation by tracking the average selling price change over time.

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