If the Interest Rate Is 6 Percent, the Net Present

question 37

Multiple Choice

If the interest rate is 6 percent, the net present value of $100 to be received two years from now is

• A) $79.72.
• B) $86.
• C) $89.
• D) $100.

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Definitions:

Merchantability

A guarantee that a product sold meets certain quality standards and is fit for the ordinary purposes for which such goods are used.

UCC

The Uniform Commercial Code represents a collection of statutes offering legal guidelines and regulations for commercial or business activities and transactions within the United States.

CISG

The treaty known as the United Nations Convention on Contracts for the International Sale of Goods sets a standardized law for international sales transactions.

Sales Contract

A legally binding agreement between a buyer and a seller detailing the terms and conditions of the sale of goods or services.