What Is the Present Value of $150 Received at the Beginning

question 14

Multiple Choice

What is the present value of $150 received at the beginning of each year for 16 years? The first payment is received today. Use a discount rate of 9%, and round your answer to the nearest $10.

• A) $1,360
• B) $1,480
• C) $1,250
• D) $1,210

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Definitions:

Customer's Negligence

A situation where a customer's failure to exercise reasonable care results in harm or damage.

Re-Credit

The process of restoring a previously deducted amount back into an account or credit rating.

Dishonored

describes a financial instrument, such as a check or a bill, that has been refused payment by the bank or person it was presented to.

Insufficient Funds

A situation where an account does not have enough money to cover checks or other withdrawals made against it.