What Is the Present Value of a $500 Payment Made

question 77

Multiple Choice

What is the present value of a $500 payment made in 4 years when the discount rate is 8 percent?

• A)$365.35
• B)$367.51
• C)$460.00
• D)$680.24

---

Definitions:

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purpose of making informed business decisions.

Income Statement

A summary of the revenue and expenses for a specific period of time, such as a month or a year.

Quality Control

The process of ensuring products and services meet customer expectations and regulatory requirements through consistent monitoring and testing.

Operating Income

Operating income refers to the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS) but before interest and taxes.