Use This Information to Answer the Following Question What Is the Present Value of Receiving $400 at the

question 5

Multiple Choice

Use this information to answer the following question. $\begin{array}{|c|c|c|}\hline \text { Periods } & \text { Present Value of } \$ 1 \text { at } 7 \text { Percent } & \begin{array}{c}\text { Present Value of Ordinary Annuity of } \$ 1 \\\text { at } 7 \text { Percent }\end{array} \\\hline 1 & 0.935 & 0.935 \\\hline 2 & 0.873 & 1.808 \\\hline 3 & 0.816 & 2.624 \\\hline\end{array}$ What is the present value of receiving $400 at the end of each year for three years?

• A) $1,122.00
• B) $326.40
• C) $979.20
• D) $1,049.60

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Definitions:

Revised Article 9

An update to the Uniform Commercial Code that deals with secured transactions; it governs the process of securing assets to back a loan.

UCC

The Uniform Commercial Code is a widespread legislative schema that guides all commercial operations in the United States.

Security Agreement

is a legal document that provides a lender a security interest in a specified asset or property that serves as collateral for a loan.

Online

Connected to or available through the internet or other digital network.