What Is the Present Value (PV)of $85,000 Received 15 Years

question 71

Multiple Choice

What is the present value (PV) of $85,000 received 15 years from now,assuming the interest rate is 3% per year?

• A)$54,558
• B)$85,000
• C)$82,524
• D)$132,427
• E)$5,502

---

Definitions:

Maturity Value

The amount payable to an investor at a security's maturity date, including principal and any remaining interest.

Cash Debited

An accounting entry that increases the cash balance in a company's ledger.

Notes Receivable

Financial assets representing amounts owed to the holder by others through formal written agreements stipulating payment terms.

Open Account

A credit arrangement where goods and services are provided with the agreement that payment will be made at a later date.