How Much Would $20,000 Due in 50 Years Be Worth

question 60

Multiple Choice

How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

• A) $618.45
• B) $656.09
• C) $451.74
• D) $537.78
• E) $661.47

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Definitions:

Profit Margin

A financial indicator that calculates how much net profit is generated for every dollar of sales by examining the relationship between a company's net income and its revenue.

Projected Addition

An estimate of future increases or expansions in inventory, assets, or capacity planned by a firm.

Current Ratio

The Current Ratio is a liquidity metric that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Notes Payable

Financial obligations represented by formal written agreements to pay a specific sum of money at a future date.