Present Value of 1 Future Value of 1

question 15

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Jackson has a loan that requires a $17,000 lump sum payment at the end of four years.The interest rate on the loan is 5%,compounded annually.How much did Jackson borrow today?

• A)$16,150
• B)$13,600
• C)$11,504
• D)$13,986
• E)$15,343

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Definitions:

Par Value

This term denotes the officially stated value of a share of stock or bond, serving as a legal capital threshold that companies cannot issue stock below.

Current Market Value

The amount of money that could currently be received for selling an asset in the marketplace.

Par-value

The face value of a bond or the stated value of a stock, as defined in the corporate charter, which has little to do with its market value.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, taking into account its purchase price, interest payments, and terminal value.