What Is the Present Value of $100,500 to Be Received

question 32

Multiple Choice

What is the present value of $100,500 to be received 23 years from now if the interest rate is 7.5 percent?

• A)$19,044.58
• B)$163,565.44
• C)$16,447.34
• D)$26,200.30
• E)None of the above.

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Definitions:

Consignor

The party in a consignment agreement that provides goods to another party (consignee) to sell on their behalf, retaining ownership until the goods are sold.

Consignee

The individual or entity to whom goods are shipped and who is responsible for receiving the shipment and completing any customs paperwork.

Ending Inventory

The value of goods that remain unsold at the end of an accounting period.

Cost Flow Assumption

An accounting method used to value inventory and determine the cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out).