If the Present Value of $480 to Be Paid at the End

question 59

Multiple Choice

If the present value of $480 to be paid at the end of one year is $400, what is the one-year discount factor?

• A) 0.8333
• B) 1.20
• C) 0.20
• D) None of the above

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Definitions:

Active Listening

The practice of paying full attention to speakers, understanding their message, and responding thoughtfully, essential in effective communication.

Jewelry

Decorative items worn for personal adornment, such as rings, necklaces, and bracelets, often made from precious metals and stones.

RAM

Random Access Memory, a form of computer memory that can be accessed randomly and is used for storing operating system, application programs, and currently processed data.

Intermittent

Intermittent refers to events or processes that are not continuous but occur at irregular intervals.