The Present Value of $475 Received 3 Years in the Future

question 103

Multiple Choice

The present value of $475 received 3 years in the future would be calculated as which of the following when the interest rate is 6 percent?

• A)475/(1.6)³
• B)475/(1.06)³
• C)475 × 1.6 × 3
• D)3.06/475

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Definitions:

Organizations

Groups or institutions comprising individuals working together to achieve common goals or objectives.

Critical Path Method

A project management technique for determining the longest sequence of dependent tasks and scheduling resources to optimize achievement of project objectives.

PERT Chart

A project management tool used to schedule, organize, and coordinate tasks within a project, standing for Program Evaluation and Review Technique.

Longest Path

In project management, the sequence of tasks that determines the minimum timeframe required to complete a project, with any delay in these tasks delaying the whole project.