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:

System Clock

A timing device within a computer that synchronizes and governs the timing of all computer operations.

Volatile Storage

A type of memory that requires power to maintain the stored information; it loses its data when power is turned off.

CPU Speed

The speed at which a computer's central processing unit (CPU) executes instructions, typically measured in Hertz (Hz); it determines the efficiency and performance of the computer's processing power.