Present Value of 1 Future Value of 1

question 46

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Which interest rate column would you use from a present value or future value table for 8% interest compounded quarterly?

• A)12%
• B)6%
• C)3%
• D)2%
• E)1%

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Definitions:

Last Dollar

The final unit of currency spent or invested in the completion of a transaction or project.

Marginal Product

The additional output produced by employing one more unit of a particular input, holding other inputs constant.

Wage

A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to manual or unskilled workers.

Rental Rate

The cost associated with leasing a particular commodity, property, or piece of equipment per unit time.