Present Value Is Based on

question 21

Multiple Choice

Present value is based on

• A)the dollar amount to be received.
• B)the length of time until the amount is received.
• C)the interest rate.
• D)All of these answers are correct.

---

Definitions:

Payer's Check

A check issued by an individual or entity (the payer) to another party as a form of payment.

Bank Withdraws

Actions by which funds are taken out from a bank account by the account holder.

Endorsement

Signature on the back of a check with the terms for accepting the check as payment.

Cashed

Processed or exchanged for its value in money, typically referring to a check being turned into cash.