Present and Future Value Tables of $1 at 3% Are

question 35

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-On January 1, 2018, you are considering making an investment that will pay three annual payments of $10,000. The first payment is not expected until December 31, 2020. You are eager to earn 3%. What is the present value of the investment on January 1, 2018?

• A) $26,662.
• B) $27,462.
• C) $28,286.
• D) $29,135.

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Definitions:

Cash Received

The amount of money received by a business or individual in a given period.

Historical Cost

The original monetary value of an asset or investment at the time of its purchase or acquisition.

Financial Position

The financial position of a company or individual refers to their economic status and health, determined by assessing assets, liabilities, and equity at a given point in time.

Book Value

The net value of a company's assets minus its liabilities, often used to determine the potential value of a company if it were to be liquidated.