Which Type of Computation Would a Person Use to Determine

question 66

Multiple Choice

Which type of computation would a person use to determine current value of a desired amount for the future?

• A)simple interest
• B)future value of a single amount
• C)future value of a series of deposits
• D)present value of a single amount
• E)present value of a series of deposits

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Definitions:

Utility

A measure of satisfaction or happiness that a consumer gains from consuming a good or service.

Income

The financial gain received by an individual or business, typically in the form of wages, salaries, or profits, for providing labor or capital or through investing.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party or parties to be charged, with the purpose of preventing fraud and perjury in the performance and enforcement of agreements involving significant matters.

Written Document

A composed material that records information in written form for communication or archival purposes.