What Is the Present Value of a Payment of $100

question 7

Multiple Choice

What is the present value of a payment of $100 to be made one year from today if the interest rate is 6 percent?

• A)$105.26
• B)$105.00
• C)$97.24
• D)$94.34

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Definitions:

Schedule Of Cash Collections

A detailed plan that shows when a company expects to receive cash from accounts receivable or other revenue sources.

Direct Labor Budget

A direct labor budget is a financial plan that estimates the total cost of direct labor required to meet the production needs of a business.

Direct Labor-hours

The total hours worked directly on the production of goods.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.