With a Nominal Interest Rate of 5% Per Year,the Present

question 49

Multiple Choice

With a nominal interest rate of 5% per year,the present discounted value of $100 to be received in 10 years is

• A)$50.00.
• B)$61.39.
• C)$95.24.
• D)$150.00.
• E) $163.89.

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Definitions:

Profitable

A financial status indicating that the revenue of an entity is greater than its expenditures over a specified period, resulting in a net gain.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a company.

Short-term Liabilities

Financial obligations of a business that are due to be settled within one year, such as accounts payable, short-term debts, and accrued expenses.

Automatic Financing

A preapproved loan where funds are automatically available when needed.