Using the Following Partial Table of Present Value of $1

question 22

Multiple Choice

Using the following partial table of present value of $1 at compound interest,compute the present value of $20,000 (rounded to nearest dollar) to be received one year from today,assuming an earnings rate of 15%.

• A)$17,400.
• B)$17,000.
• C)$20,000.
• D)$15,451.

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts payable and inventories.

Repayment Terms

Conditions agreed upon by lenders and borrowers regarding how a loan will be repaid, including interest rates and duration.

Revolving Credit Agreement

A legal financial contract between a lender and a borrower that allows the borrower to access funds up to a pre-approved credit limit, repay, and withdraw again.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for financing accounts receivable and inventories.