Find the Present Value of $20,000 Due in 4 Year(s)

question 63

Multiple Choice

Find the present value of $20,000 due in 4 year(s) at the given rate of interest. Round your answer to the nearest dollar. ​
5% / year compounded monthly __________
​
8% / year compounded daily __________
​

• A) $16,381, $14,523
• B) $16,381, $24,418
• C) $16,381, $27,542
• D) $14,523, $24,418

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Definitions:

Income Statement

A report detailing a business's income and outgoings within a set timeframe, resulting in either a net gain or deficit.

Recognized

Accounting term referring to the formal acknowledgment in financial statements of income earned or expenses incurred.

Dividend Yield

The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Par Value

The face value of a bond or the stock value stated in the corporate charter.