Given a Discount Rate of 10 Percent, the Present Value

question 92

Multiple Choice

Given a discount rate of 10 percent, the present value of receiving $10,000 two years in the future is

• A) $12,000.
• B) $8,000.
• C) $8,264.46.
• D) $12,100.

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Definitions:

Oral

Referring to spoken words or agreements not recorded in writing, which may or may not be legally binding depending on the context.

Leading Object Rule

The Leading Object Rule is a legal principle that allows for oral modifications to a written contract if the modification serves a purpose primarily related to the object of the original contract.

Parol Evidence Rule

a legal principle that prevents the parties of a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary contractual terms.

Main Purpose

The primary objective or aim intended to be achieved by something or someone.