Approximately How Much Is $25,000 to Be Received a Year

question 99

Multiple Choice

Approximately how much is $25,000 to be received a year from now worth today at an interest rate of 11 percent?

• A)$27,750
• B)$25,556
• C)$22,523
• D)$20,385

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Definitions:

Wages

Wages are the monetary compensation paid by an employer to an employee in exchange for work performed, typically calculated on an hourly, daily, or piecework basis.

Capital Equipment Purchases

Expenditures made by a company to acquire or upgrade physical assets such as machinery or buildings.

Cash Budgeting

The process of planning and managing a company's cash inflows and outflows over a specific period of time, predicting its future cash position.

Carrying Costs

The expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs, which can affect a company's profitability.