What Is the Present Value (PV) of $90,000 Received Six

question 67

Multiple Choice

What is the present value (PV) of $90,000 received six years from now, assuming the interest rate is 5% per year?

• A) $58,500.00
• B) $57,085.48
• C) $67,159.39
• D) $117,528.93

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Definitions:

Feasible Solutions

A set of solutions that meet all the constraints of a particular problem, available for consideration in decision-making processes.

Graphical Linear Programming

A method for solving linear programming problems by graphically finding the optimum point that maximizes or minimizes the objective function.

Constraints

Limitations or restrictions in a manufacturing or production process, which can affect the efficiency or outcomes.

Iso-profit Line

A graphical representation in microeconomics that shows all possible combinations of two goods that yield the same profit level for a firm.