An Investment Will Pay You $120 in One Year and $200

question 6

Multiple Choice

An investment will pay you $120 in one year and $200 in two years. If the interest rate is 4%, what is the present value of these cash flows?

• A) $304.91
• B) $307.69
• C) $300.29
• D) $320.00

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Definitions:

General Ledger

A comprehensive record of a company's financial transactions over the life of the organization, organized by accounts.

Division of Labor

Division of labor is the separation of tasks in any economic system or organisation so that participants may specialize, increasing efficiency and productivity.

Multi-Column Journal

An accounting journal that contains multiple columns for recording financial transactions in a systematic way.