Present Value Is Defined as The

question 54

Multiple Choice

Present value is defined as the:

• A) Amount of money invested each time period for a stated number of periods.
• B) Summation of the cash flows received within a specified period of time.
• C) Value of future cash flows in today's dollars given a specific discount rate.
• D) Compounded value of a principal amount given a specific rate of interest.
• E) Value of an investment given simple interest for a specific period of time.

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Definitions:

Categorical Data

Data that represent categories - qualitative data that can be divided into group or categories.

Quantitative

Referring to data or information that can be measured and expressed numerically.

Percent Frequencies

The representation of the occurrence of different categories as percentages of the total.

Number of Classes

Number of Classes refers to the division of data into intervals for the purpose of frequency distribution or histogram representation.