What Is the Present Value (PV)of $100 000 Received Five

question 7

Multiple Choice

What is the present value (PV) of $100 000 received five years from now, assuming the interest rate is 8% per year?

• A)$68 058.32
• B)$73 502.99
• C)$82 609.42
• D)$60 000.00

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Definitions:

Birthday Rule

An insurance policy determination rule that establishes priority of coverage for a child when covered by both parents' plans; typically, the parent whose birthday occurs first in the calendar year holds the primary plan.

Primary Payer

The insurance or funding source that is responsible for paying a claim first, before any other coverage is considered.

Fee Schedule

A list of the costs of common services and procedures performed by a physician.

Usual Fees

The standard charges or rates typically applied by professionals, such as doctors or lawyers, for their services.