Below Is a Table for the Present Value of $1

question 119

Multiple Choice

Below is a table for the present value of $1 at compound interest.
Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, what would be the present value of $25,000 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?

• A) $19,800
• B) $17,075
• C) $79,250
• D) $15,525

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Definitions:

Net Income

The conclusive profit of a business, determined by subtracting expenses, taxes, and costs from its overall revenue.

Excess of Cost

Excess of cost refers to the situation where the purchase price of an acquired company exceeds the sum of the fair value of its identifiable tangible and intangible assets.

Book Value

The company's assets' total worth after subtracting its debts, frequently utilized to determine whether a stock is priced too low or too high.

Fair Value

The financial receipts from a sale of an asset or the liabilities' transfer expense in a transaction that is orderly and involves market participants at the time allocated for measurement.