What Is the Present Value of a Payment of $100

question 173

Multiple Choice

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?

• A)$95.50
• B)$95.24
• C)$95.00
• D)None of the above are correct to the nearest penny.

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Definitions:

Implicit Memory

A form of memory where past experiences assist in accomplishing a task without the individual being consciously aware of these past experiences.

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.

Liability

A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.

Low-Quality Earnings

Earnings reported by a company that may not be repeatable, sustainable, or indicative of its operational health, often inflated by accounting gimmicks or one-time items.