What Is the Present Value of $500 to Be Received

question 265

Multiple Choice

What is the present value of $500 to be received eight years from now if the interest rate is 5 percent?

• A) $300
• B) $338.42
• C) $700
• D) $738.72

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Definitions:

Human Factor

The consideration of the human element, including psychological, physical, and social aspects, in the design and operation of systems and services.

Service

The action of helping or doing work for someone, often refers to intangible products offered by businesses.

Human Relations Movement

A management theory focusing on the psychological and social aspects of work, emphasizing the importance of employee welfare, motivation, and communication to increase productivity.

Theorists

Individuals who develop theories in a particular field to explain phenomena based on abstract principles and systematic reasoning.