The Rate of Return Is 10% and the Cash to Be

question 1

Multiple Choice

The rate of return is 10% and the cash to be received in one year is $25,000.Determine the present value amount,using the following partial table of present value of $1 at compound interest:

• A)$22,500
• B)$25,000
• C)$27,275
• D)$22,725

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Definitions:

Limited-Line Stores

Retail outlets that specialize in a limited range of products, offering depth in specific categories rather than a broad assortment across many categories.

Scrambled Merchandise Stores

Retail outlets that offer a wide range of unrelated products under one roof.

Category Killer

A large retail store specializing in a particular product category, dominating the market and often driving smaller retailers out of business.

General Merchandise Store

Retail establishments offering a wide range of products from various categories including clothing, housewares, and groceries.