What Is the Present Value of $10 000 to Be

question 13

Multiple Choice

What is the present value of $10 000 to be received in 5 years from now if the annual discount rate is 10% and the compounding frequency is annual?

• A)$5000.00
• B)$16105.10
• C)$6666.67
• D)$6209.21

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Definitions:

Net Sales

The residual income from sales once deductions for returns, allowances for impaired or absent merchandise, and markdowns are made.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment schedule, interest rate, and due dates.

Invoice

A document issued by a seller to a buyer that lists the products or services sold, their quantities, and the prices charged.

Supplier

A supplier is an entity or person that provides products or services to another business, often a key component in the supply chain of manufacturing and retail operations.