A Future Payment's Present Value Is

question 195

Multiple Choice

A future payment's present value is

• A)the value in today's dollars of funds to be paid or received today.
• B)the value in a future date's dollars of funds to be paid or received in the future.
• C)the value in today's dollars of funds to be paid or received in the future.
• D)the value in a future date's dollars of funds to be paid or received today.

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Definitions:

Capital Account

Part of a country's balance of payments, it records the net change in ownership of national assets.

Interest

The cost of borrowing money or the return on investment for savings and loans, expressed as a percentage.

Revaluation

The process of adjusting the book value of a fixed asset or foreign currency to reflect its current market value.

Assets

Assets held or managed by a company anticipated to yield future financial gains.