If the Future Value of $1 Invested Today at an Interest

question 33

Multiple Choice

If the future value of $1 invested today at an interest rate of r% for n years is 9.6463,what is the present value of $1 to be received in n years at r% interest rate?

• A)$9.6463
• B)$1.0000
• C)$0.1037
• D)$0.4132

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Definitions:

Return on Equity

A financial ratio that measures the profitability of a firm in relation to its equity, indicating how well a company uses investments to generate earnings growth.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, often referred to as shareholder's equity or owners' equity.

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.