The Present Value of $1000 Payable in Two Years from Today

question 67

Multiple Choice

The present value of $1000 payable in two years from today is:

• A)$1000/(1 + 2r).
• B)$1000/(1 + r)².
• C)$1000/(1 - 2r).
• D)$1000.

---

Definitions:

Votes Cast

The total number of votes made by shareholders or members in an election or decision-making process.

Proxy

Grant of authority by a shareholder allowing for another individual to vote his or her shares.

Preferred Stock

A type of corporate share that is prioritized over common stock in terms of asset and income claims, usually with dividends paid out to these shareholders first.

Bankruptcy

The legal process through which individuals or businesses unable to pay their debts can seek relief from some or all of their liabilities.