A Debt Can Be Repaid by Payments of $1000

question 151

Essay

A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually?

Define and differentiate between various types of digital media and their applications.

Understand the concept of rendering in the context of creating digital graphics.

Identify the most suitable video resolution for specific display devices.

Understand the principles and methods used for preparing consolidated financial statements.

---

Definitions:

Contingent Liability

A potential obligation that may arise from a past event, the outcome of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Accounts Payable Turnover Ratio

A financial metric that measures how quickly a business pays off its suppliers by comparing net credit purchases to average accounts payable.

Inventory

The total amount of goods and materials held by a company for sale in the ordinary course of business.