The Current Worth of a Claim on Future Resources Is

question 68

Multiple Choice

The current worth of a claim on future resources is called:

• A) net present value.
• B) future value.
• C) present discounted value.
• D) internal rate of return.

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Definitions:

Debtor

An individual, company, or institutional entity that owes money to another entity.

Secured Transaction

A loan or credit transaction in which the borrower agrees to give the lender a security interest in certain property (collateral) as a guarantee for repayment.

Personal Property

Personal property refers to assets or belongings that are movable and not permanently fixed to one location, such as furniture, vehicles, and electronics.

Debt

An obligation owed by one party (the debtor) to a second party (the creditor); often referring to borrowed money that must be repaid.