The Present Value of $60,000 to Be Received in One

question 158

Multiple Choice

The present value of $60,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar)

• A) $56,604
• B) $63,396
• C) $60,000
• D) $3,396

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Definitions:

Specified Risk Level

A predefined degree of risk that an investment or portfolio is expected to adhere to.

Efficient Market

A market in which asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Unexpectedly High Earnings

Unexpectedly high earnings refer to a company's reported profits that significantly exceed analysts' forecasts or the company's own guidance.

Abnormal Price Change

A significant variation in the price of a security or trading instrument that cannot be explained by market fundamentals and might be attributed to extenuating circumstances or events.