What Is the Present Value (PV) of $100,000 Received Five

question 51

Multiple Choice

What is the present value (PV) of $100,000 received five years from now, assuming the interest rate is 8% per year?

• A) $82,609.42
• B) $68,058.32
• C) $73,502.99
• D) $60,000.00

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Definitions:

Business Message

Information shared within or outside a company, intended to convey a business-related purpose or goal.

Type Style

The distinct appearance and characteristics of text in written material, determined by the font, size, and formatting.

Revising for Clarity

The process of reviewing and editing text to ensure that it is understandable and unambiguous.

Perceptual Tricks

Techniques or illusions that manipulate perception, often used in art, entertainment, or psychological experiments to highlight how the senses can be deceived.