Using a Discount Rate of 12 Percent, the Present Value

question 6

True/False

Using a discount rate of 12 percent, the present value of a $50,500 benefit received two years from now is $40,258.29.

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Definitions:

Comprehension

The ability to understand or grasp the meaning of something.

Buried Verb

A writing flaw where the action (verb) is hidden in a noun form, making sentences longer and less clear.

Consideration

The process of thoughtful and careful reflection on various aspects or details of a situation, decision, or action.

Active-voice Verbs

Verbs that depict the subject of a sentence as the doer of an action.