The Present Discounted Value of $75 to Be Received in Two

question 173

Multiple Choice

The present discounted value of $75 to be received in two years with no interest is ____ when the interest rate is 8 percent.

• A)$64.30
• B)$69.44
• C)$87.48
• D)$75
• E)$81

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Definitions:

Functional Planning

pertains to the process of developing detailed strategies and actions for specific functional areas within an organization, such as marketing or operations.

Production Planning

The process of organizing and controlling all aspects of production, from raw material procurement to the final product, to ensure efficiency and productivity.

Gains From Trade

The benefits that arise for nations or individuals from trading goods, services, or resources with each other.

Specialization

The process in which individuals or entities focus on producing a limited range of goods or services to gain greater efficiency and productivity.