Consider the Following Time Line

question 44

Multiple Choice

Consider the following time line:
If the current market rate of interest is 8%,then the present value of this timeline is closest to:

• A)$1000
• B)$857
• C)$860
• D)$926

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Definitions:

Additional Obligations

Additional obligations mean extra duties or responsibilities that may be added to an agreement or contract beyond its originally stipulated terms.

UCC

A vast array of regulatory provisions for commercial transactions in the United States is constituted within the Uniform Commercial Code.

Incidental Beneficiaries

Third parties who might benefit from a contract incidentally but have no enforceable rights in that contract.

Intended Third-Party Beneficiaries

Individuals or groups not directly involved in a contract who are nevertheless intended by the contracting parties to benefit from the contract's performance.