If the Rate of Interest Is 15 Percent Per Year,the

question 46

Multiple Choice

If the rate of interest is 15 percent per year,the present value of the $200 to be received in two years is

• A)$170.00.
• B)$185.00.
• C)$173.91.
• D)$264.50.
• E)$151.23.

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Definitions:

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or the hours it operates.

Double-Declining-Balance

An accelerated method of depreciation that doubles the standard depreciation rate, resulting in higher depreciation expenses in the earlier years of an asset's life.

Residual Value

The salvage value of an asset after its period of use has ended, reflecting its remaining worth.

Depreciation Method

A methodical strategy for distributing the expense of a physical asset across its lifespan.