Which,if Any,of the Present Values Below Are Correctly Computed

question 155

Multiple Choice

Which,if any,of the present values below are correctly computed?

• A)A payment of $1,000 to be received one year from today,with a 8 percent interest rate,has a present value of $945.45.
• B)A payment of $1,000 to be received one year from today,with a 9 percent interest rate,has a present value of $911.11.
• C)A payment of $1,000 to be received one year from today,with a 10 percent interest rate,has a present value of $905.06.
• D)None of the above are correct to the nearest cent.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and trees, as opposed to personal property.

UCC

The Uniform Commercial Code consists of regulations governing sales and commercial activities across the United States.

Consumer Goods

Products bought for consumption by the average consumer, typically including items such as food, clothing, and household goods.

Automatically Perfected

A legal status of a security interest in which it becomes enforceable against third parties without any further action required by the interest holder.