The Present Value of $1 Received 1 Year from Now,given

question 161

Multiple Choice

The present value of $1 received 1 year from now,given the current interest rate of 7%,is about

• A)$.90.
• B)$.91.
• C)$.93.
• D)$1.00
• E)$1.07

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense. Opposite of a debit.

Ledger

A comprehensive collection of a company's accounts that records all financial transactions.

Income Statement

A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net profit or loss.

Balance Sheet

A record presenting a business's holdings, obligations, and investor equity at a distinct time.