What Is the Present Value of $25 to Be Received

question 30

Multiple Choice

What is the present value of $25 to be received at the end of each year for the next 6 years if the discount rate is 12%?

• A) $125.00
• B) $113.06
• C) $102.79
• D) none of the above

---

Definitions:

Internal Control

A system of policies and procedures implemented by a company to ensure the integrity of financial and accounting information, enhance operational efficiency, and promote adherence to applicable laws and regulations.

Bank Account

An account held by an individual or business with a financial institution, allowing for the deposit and withdrawal of funds.

Physical Custody

The actual possession or direct control of tangible assets, documents, or securities.

Asset Records

Documentation that details the acquisition, valuation, and disposal of assets owned by an individual or organization.