The Procedure Used to Compute the Future Value of a Series

question 1

Multiple Choice

The procedure used to compute the future value of a series of cash flows is known as:

• A) compounding.
• B) the annuity method.
• C) discounting.
• D) the future-cost approach.
• E) indexing.

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is believed, with a certain level of confidence, to contain the population parameter of interest.

Credit Sales

Sales made by a business for which payment will be made at a later date, as opposed to immediate cash sales.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A statistical measure of the dispersion or spread of data points in a data set, indicating how much the individual data points differ from the mean.