What Is the Present Value of $10 000 to Be

question 50

Multiple Choice

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

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

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Definitions:

Withdrawals Account

An account used to track the money that an owner takes out of the business for personal use, also known as draws.

Capital Account

A financial statement that shows the changes in a company's equity, including contributions by and distributions to owners over a period.

Withdrawals Account

A record of the money taken out of a business by its owner(s) for personal use.

Income Summary

A temporary ledger account used in the closing process to summarize the year's revenues and expenses before transferring the net income or loss to the owner's equity account.