Present and Future Value Tables of $1 at 11% Are

question 75

Multiple Choice

Present and future value tables of $1 at 11% are presented below.

-Spielberg Inc. signed a $200,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception?

• A) $200,000.
• B) $178,000.
• C) $118,690.
• D) $222,000.

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Definitions:

Development

Involves the process of growth and change in humans across the lifespan, including physical, cognitive, and socioemotional changes.

Predictability

The degree to which future events or outcomes can be foreseen based on current or past information.

Continuous Process

Describes an operation or procedure that operates without interruption, typically in a manufacturing or production context.

Sequence Of Stages

A series of steps or phases that occur in a particular order as part of a process or development.