What Is the Present Value of $575 in One Year

question 182

Multiple Choice

What is the present value of $575 in one year if the current rate of interest is 4 per cent?

• A) $410.71
• B) $552.88
• C) $598
• D) $805

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Definitions:

Equality

In a business context, equality refers to ensuring fair treatment and opportunities for all employees, stakeholders, and customers, regardless of their background or personal characteristics.

Debits And Credits

Debits and Credits are accounting entries used to record transactions in the company’s books, where debits increase asset or expense accounts and decrease liability, equity, or revenue accounts; credits do the opposite.

Ledger

A comprehensive collection of a company's financial accounts, transactions, and balances, organized within a book or computer system, serving as the principal component of the double-entry bookkeeping system.

Journalizing

The process of recording financial transactions in the journal as part of the accounting cycle.