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:

Call Option Values

The worth of a call option based on factors like the underlying asset's price, the strike price, and the time to expiration.

Dividend-Payout Policies

Corporate strategies determining the size and timing of dividend payments to shareholders.

Month of May

The fifth month of the year in the Gregorian calendar, associated with spring in the northern hemisphere and autumn in the southern hemisphere.

Put Option

A financial contract allowing the holder to sell a stock, bond, commodity, or other asset at a specified price within a certain period.