The Rate of Return Used When Computing a Present Value

question 95

Multiple Choice

The rate of return used when computing a present value is referred to as the ______ rate while the rate used when computing a future value is referred to as the _____ rate.

• A) Compound; discount.
• B) Compound; simple.
• C) Compound; compound.
• D) Discount; discount.
• E) Discount; compound.

---

Definitions:

Dangerous Object

An item that through its inherent characteristics, use, or misuse, can reasonably be foreseen to cause injury or harm.

Motor Vehicle

A self-propelled vehicle used for transporting passengers or goods on a road.

Peroxide

A compound containing two oxygen atoms bonded together in its molecule or as the anion O2^2-. Commonly used as a bleaching agent and antiseptic.

Break Off

To discontinue or end abruptly a relationship, negotiation, or engagement of some sort.