You Expect to Receive $5,000 in 25 Years

question 153

Multiple Choice

You expect to receive $5,000 in 25 years.How much is it worth today if the discount rate is 5.5%?

• A) $1,067.95
• B) $1,124.16
• C) $1,183.33
• D) $1,245.61
• E) $1,311.17

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Definitions:

Slide Error

An accounting error resulting from moving decimal points improperly in figures, not due to mathematical mistakes.

Trial Balance

A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the balance of a company's accounting system.

Prepaid Insurance

An expense paid in advance for insurance coverage, recorded as a current asset on the balance sheet until the coverage period elapses.

Posting Reference

A code or number used in ledger accounts that links journal entries to the specific accounts affected, facilitating traceability and audit processes.