You Are to Receive $12,000 at the End of 5

question 38

Multiple Choice

You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?

• A) present value of an annuity of $1
• B) future value of an annuity
• C) present value of $1
• D) compound sum of $1

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Definitions:

Bankruptcy Code

The body of federal law under the United States Code that governs the process of bankruptcy in the United States.

Statutory Lien

A legal claim or hold on property, established by statute, as security for the payment of a debt or obligation.

Security Interest

A legal claim or lien on property as security for the payment of a debt or obligation.

Judicial Lien

A claim or hold placed on an individual's property as a result of a court judgment, to ensure the settlement of a debt or obligation.