The Present Value of $300 Received 5 Years in the Future

question 9

Multiple Choice

The present value of $300 received 5 years in the future would be calculated as which of the following when the interest rate is 5%?

• A)300/(1.5)⁵
• B)300/(1.05)⁵
• C)300 × 1.5 × 5
• D)5.05/300

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Definitions:

Dichlorobenzene

An aromatic compound with the formula \(C_6H_4Cl_2\), existing in three isomeric forms, and used as a solvent, deodorant, and in the manufacture of other chemicals.

Highest Wavelength

Refers to the longest wavelength of light within a spectrum, typically associated with the lowest energy transition.

Acceptable Name

A term or name that is officially recognized and widely accepted in a specific field or context.

Compound

A chemical combination of two or more elements in precise ratios.