Peter Invests $100,000 in a 3-Year Certificate of Deposit Earning

question 64

Multiple Choice

Peter invests $100,000 in a 3-year certificate of deposit earning 3.5% at his local bank. Which time value concept would be used to determine the maturity value of the certificate?

• A) Present value of one.
• B) Future value of one.
• C) Present value of an annuity due.
• D) Future value of an ordinary annuity.

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Definitions:

Marketing Channel System

A network of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user.

Marketers

Professionals responsible for identifying customer needs and directing the flow of goods and services from producers to consumers.

Technologies

The application of scientific knowledge for practical purposes, especially in industry, where it involves the design and creation of tools, machines, systems, or processes.

Intangible Benefits

Advantages derived from a product or service that cannot be physically touched or quantified, such as customer service quality or brand reputation.