What Is the Present Value of an IOU for $1,000

question 120

Multiple Choice

What is the present value of an IOU for $1,000 due to be paid in two years,if the discount rate is 8%?

• A)$857.34
• B)$766.40
• C)$885.00
• D)$683.26
• E)$810.77

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Definitions:

Railroad Industry

A sector focused on the operation of railroads and trains for the transport of goods and passengers.

Subpoena

An order to appear at a particular time and place and provide testimony.

Investigative Powers

The authority granted to certain bodies or officials to conduct enquiries, gather information, and make determinations as part of their duties.

Policy Expressions

Statements or declarations outlining the intentions, directions, or viewpoints of an organization or government on specific issues.