What Is the Discount Factor for $1 to Be Received

question 84

Multiple Choice

What is the discount factor for $1 to be received in 5 years at a discount rate of 8 percent?

• A).4693
• B).5500
• C).6000
• D).6806 Discount factor = 1/ (1.08)⁵
• = 1/1.4693

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Definitions:

Photosynthesis

A process used by plants and other organisms to convert light energy, usually from the sun, into chemical energy that can be used to fuel the organism's activities.

Ecosystems

Complex communities of organisms and their physical environment interacting as an ecological unit in nature.

Food Chains

A hierarchy of organisms each dependent on the next as a source of food, illustrating the flow of energy and nutrients.

Chlorophyll

A pigment found in plants and algae that's critical for photosynthesis, allowing them to absorb light energy.