Which of the Following Is the Equivalent of $300 Received

question 102

Multiple Choice

Which of the following is the equivalent of $300 received today?

• A)$795.99 to be received 20 years in the future assuming a 5 percent annual interest rate.
• B)$100 to be received two years from now and $200 three years from now.
• C)$300 compounded at 10 percent for one year.
• D)All of these are the equivalent of $300 received today.

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Definitions:

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.

Cost of Goods Sold

The expenditure directly associated with producing a company's sold goods, covering materials and labor involved.

Beginning Inventory

The value of an entity’s inventory at the start of an accounting period.

Net Sales

Net Sales is the total revenue from sales of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.