What Present Amount Is Equivalent to $100 Received at the End

question 47

Multiple Choice

What present amount is equivalent to $100 received at the end of each year for 8 years, given an opportunity cost of 20%?

• A)$361.90
• B)$432.20
• C)$383.72
• D)$407.80
• E)419.30

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Definitions:

Holt's Method

A forecasting technique that extends exponential smoothing to capture trends in historical data, used in time series analysis.

Effective Forecasting

The process of predicting future trends, demand, and events accurately using historical data, statistical models, and market analysis to inform decision-making.

Moving Average

A statistical technique used to analyze data points by creating a series of averages of different subsets of the full data set, commonly used in stock market analysis.

Simple Exponential Smoothing

A time series forecasting method for univariate data that applies smoothing factors to make projections, giving more weight to recent observations while considering trends in historical data.