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

question 13

Multiple Choice

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

-Polo Publishers purchased a multi-color offset press with terms of $50,000 to be paid at the date of purchase, and a noninterest-bearing note requiring payment of $20,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:

• A) $73,918.
• B) $123,918.
• C) $130,000.
• D) $169,560.

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Definitions:

Allocation Of Risk

Allocation of Risk involves distributing exposure to financial risks among various participants or financial instruments to manage potential losses more effectively.

Ownership And Control

Refers to the legal and operational authority over assets or business, which may not always coincide, especially in corporations with dispersed shareholders.

Commercial Banks

Financial institutions that provide a variety of services, including deposit accounts, loans, and other financial products, to businesses and individuals.

Financial

Relating to money or how money is managed.