What Is the Present Value of a $200 Payment Made

question 27

Multiple Choice

What is the present value of a $200 payment made in three years when the discount rate is 8 percent?

• A) $150.00
• B) $158.77
• C) $251.94
• D) $515.42

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Definitions:

Price Premiums

The additional amount that consumers are willing to pay for a product or service that they perceive as having higher value compared to its alternatives.

Frederick Reichheld

A business strategist best known for his work on customer loyalty and the development of the Net Promoter Score (NPS).

Loyal Customers

Consumers who repeatedly buy products or services from the same brand instead of turning to competitors.

Touch Point Data

Information collected from various customer interactions with a brand, product, or service, used for insightful analysis.