What Is the Value Today of $3,600 Received at the End

question 65

Multiple Choice

What is the value today of $3,600 received at the end of each year for eight years if the first payment is paid at the end of Year 4 and the discount rate is 12 percent?

• A)$11,694.21
• B)$12,484.57
• C)$12,729.12
• D)$15,089.23
• E)$14,429.52

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Definitions:

IFRS

A collection of worldwide accounting rules for financial reporting, known as International Financial Reporting Standards.

Credit Card Sale

A transaction in which the purchase of goods or services is made using a credit card, allowing customers to delay payment and sellers to receive immediate funds.

Grace Period

A set period of time after the due date during which payment can be made without penalty.

Interest Charge

The amount charged by a lender to a borrower for the use of borrowed money, typically expressed as an annual percentage of the principal.