Which of the Following Statements Is Correct

question 99

Multiple Choice

Which of the following statements is correct?

• A) $100 to be received in the future is worth more than that today since it could be invested and earn interest.
• B) $100 to be received in the future is worth less than that today since it could be invested and earn interest.
• C) The Rule of 72 calculates the compounded return on investments.
• D) Discounting is finding the future value of an original investment.

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Definitions:

Salary Allowances

Fixed amounts of money or compensations over and above regular salaries or wages that employees are entitled to receive under certain conditions or for specific purposes.

Original Investments

The initial amount of money used to purchase an asset or start a project, business, or investment.

Net Income

The profit of a company after all revenues, costs, and expenses have been deducted from total sales.

Salary Allowances

Compensation over and above regular salary payments that might be paid for special duties, skills, or for certain expenses.