$14,182 Is the Present Value of $21,000 That Earns at a Bank

question 19

True/False

$14,182 is the present value of $21,000 that earns at a bank 12% compounded quarterly for four years.

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Definitions:

Option Price

The cost at which an option's holder has the right to purchase (for a call option) or sell (for a put option) the underlying asset or commodity.

Market Value

The present rate at which a service or asset is available for purchase or sale in the market.

Equity

The value of an asset after deducting the amount of all liabilities on that asset. In investing, it often refers to the ownership interest held by shareholders in a corporation.

Firm's Debt

The total amount of money a company owes to creditors, including loans, bonds, and other forms of debt.