A Bank Lends Some Money to a Business

question 53

Multiple Choice

A bank lends some money to a business.The business will pay the bank a single payment of $180,000 in ten years time.How much greater is the present value (PV) of this payment if the interest rate is 9% rather than 8%?

• A)$7341
• B)$35,892
• C)$76,033
• D)$83,374
• E)$18,000

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Definitions:

Goal

A desired result or outcome that a person or system envisions, plans, and commits to achieve.

Self-Directed Work Teams

Groups of employees who are given the autonomy to plan and execute their own tasks, often responsible for a complete business operation or process.

Supervisor

A role within an organization responsible for overseeing and guiding the performance of a group of employees, ensuring tasks and objectives are met.

Nominal Group Technique

A structured decision-making process that allows individuals to contribute ideas independently before collectively discussing and ranking the suggestions.