What Is the Present Value of $888 in One Year

question 77

Multiple Choice

What is the present value of $888 in one year if the current rate of interest is five percent?

• A)$4,440
• B)$845.71
• C)$177.60
• D)none of these

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Definitions:

Payroll Tax Expense

The taxes that an employer incurs based on employee wages, including Social Security and Medicare taxes.

Interest Calculations

The process of determining the interest earned or paid over a specific period of time based on the principal amount and the rate of interest.

Journalize

The process of recording transactions in a company's journal as part of the accounting cycle.

Maturity

The date on which the principal or final payment is due on a loan or security.