What Is the Present Value (PV) of $50,000 Received Twenty

question 31

Multiple Choice

What is the present value (PV) of $50,000 received twenty years from now, assuming the interest rate is 6% per year?

• A) $32,500.00
• B) $13,251.70
• C) $15,590.24
• D) $27,282.92

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Definitions:

Materials Price Variance

The deviation between the actual and standard cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at the standard cost.

Cost Drivers

Factors that cause a change in the cost of an activity; they are the structural determinants of the cost of an operation, influencing the expenses of certain business activities.

Vocational School

An educational institution designed to provide vocational education, or technical skills required to perform the tasks of a particular and specific job.