What Is the Present Value of $100 to Be Deposited

question 92

Multiple Choice

What is the present value of $100 to be deposited today into an account paying 8.0 percent, compounded semi-annually for two years?

• A)$85.48
• B)$100.00
• C)$116.00
• D)$116.99

---

Definitions:

Internal Controls

Procedures and mechanisms implemented by a company to ensure integrity in financial reporting, compliance with laws and regulations, and effective and efficient operations.

Physical Count

The process of manually counting actual inventory or assets in person, often for verification purposes against accounting records.

Inventory

The raw materials, work-in-process goods, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

LIFO Conformity Rule

A requirement for companies using the Last In, First Out (LIFO) method for tax reporting to also use it for financial reporting to shareholders.