If You Want to Know the Present Value of a Future

question 197

Multiple Choice

If you want to know the present value of a future payment received in one year, what formula can you use?

• A)Present value equals future payment times the current market rate of interest.
• B)Present value equals future payment divided by one plus the rate of interest.
• C)Present value equals one plus the rate of interest in decimals divided by future payment.
• D)Present value equals future payments times one plus the rate of interest.

Recognize various persuasive propositions (e.g., autosuggestion, prestige, suggestive) and their application in sales scenarios.

Understand the role and structure of logical reasoning in sales presentations.

Identify the purposes and components of a marketing plan within the sales context.

Understand how personalizing relationships and utilizing visual aids can enhance sales presentations and customer retention.

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Definitions:

Operating Cycle

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Financial Resources

Financial resources are the funds available to a business or individual for spending, investment, and other purposes.

Accumulate

To gather or collect items over a period of time, often for a specific purpose or to achieve a particular goal.

Vest

To bestow a right, immediate or future, for the ownership of (an asset, typically a stock or option) to a worker under a plan, which may be subject to conditions.