Use the Following to Answer Questions

question 94

Multiple Choice

Use the following to answer questions
Present and future value tables of $1 at 3% are presented below:

-Jose wants to cash in his winning lottery ticket.He can either receive five $5,000 annual payments starting today,or he can receive a lump-sum payment now based on a 3% annual interest rate.What would be the lump-sum payment?

• A)$23,586.
• B)$22,899.
• C)$21,565.
• D)$23,000.

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Definitions:

Customer/Retailer Interface

The point of contact and interaction between a customer and a retailer, where services and information are exchanged.

Replenishment Cycle

The repeat process of ordering and stocking new inventory to replace what has been sold or used, ensuring a sufficient level of stock is maintained.

Retailer and Distributor

Involved in the distribution process, with retailers selling goods directly to consumers and distributors serving as intermediaries who move products from manufacturers to retailers or other businesses.

Customer Order Entry

A system or process that captures and records customer requests for goods or services.