What Is the Present Value of a Payment of $21,000

question 46

Multiple Choice

What is the present value of a payment of $21,000 three years from now if the effective annual interest rate is 4%?

• A) $17,951
• B) $18,480
• C) $18,658
• D) $18,669
• E) $19,218

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Definitions:

Product-line Pricing

A pricing strategy where different products within the same category are priced differently based on features, benefits, and cost of production.

Line Item Pricing

A pricing method where each individual item or service is priced separately rather than bundled together.

Discretionary Pricing

A pricing strategy where the seller has the flexibility to set prices based on market conditions, costs, or personal judgment.

Perceived Value

The consumer's assessment of the worth or utility of a product based on its ability to meet needs and expectations, relative to its cost.