If the Annual Interest Rate Is 0 Percent,the Present Value

question 31

Multiple Choice

If the annual interest rate is 0 percent,the present value of receiving $1.10 in the next year is:

• A) $1.00.
• B) $1.01.
• C) $1.11.
• D) $1.10.

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Definitions:

Owner's Withdrawals Account

An equity account that records the amounts withdrawn by the owner(s) of a business for personal use.