At an Interest Rate of 3%,what Is the Present Value

question 81

Multiple Choice

At an interest rate of 3%,what is the present value of $1,000 to be received five years from now?

• A) $850
• B) $863
• C) $1,159
• D) $1,667

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Definitions:

Financial Worth

The total value of all assets owned by an individual or organization, minus any liabilities owed.

Company Relationship

The interactions and connections between a business and its stakeholders, including customers, employees, investors, and suppliers.

Customer Lifetime Value

The total amount of money a company expects to earn from a customer over the entirety of their relationship.

Fast-Food Restaurants

Eateries that specialize in serving food quickly and affordably, often part of a chain with a standardized menu.