Present Value What Is the Present Value of a $500

question 89

Multiple Choice

Present Value What is the present value of a $500 deposit in year 1 and another $100 deposit at the end of year 4 if interest rates are 5 percent?

• A)$480.00
• B)$493.62
• C)$558.46
• D)$582.27

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Definitions:

Period

A specific duration of time used for financial reporting and analysis, typically a fiscal quarter or year.

Cost of Goods Sold

Direct expenditures linked to the creation of goods sold by a business.

Calculate

To determine something mathematically, such as a sum, total, or other numeric value.

Period

A length of time in financial accounting, often used to report earnings or track expenses, such as a quarter or fiscal year.