Which,if Any,of the Present Values Below Are Computed Correctly

question 190

Multiple Choice

Which,if any,of the present values below are computed correctly?

• A)A payment of $100 to be received one year from today,with a 2 percent interest rate,has a present value of $98.81.
• B)A payment of $200 to be received two years from today,with a 3 percent interest rate,has a present value of $188.52.
• C)A payment of $300 to be received three years from today,with a 4 percent interest rate,has a present value of $234.34.
• D)None of the above are correct to the nearest cent.

Recognize the role and impact of advertising in the marketing mix.

Understand the use and effects of different advertising schedules.

Recognize the regulatory environment governing advertising activities.

Understand the concept of sales promotions and their role in marketing.

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Definitions:

Highly Liquid Securities

Financial instruments that can easily be converted into cash with minimal impact on their price.

Low-Risk Securities

Investments that have a lower chance of loss or default, often characterized by more stable returns.

Historical Cost Principle

An accounting principle that states that assets should be recorded and reported at their original purchase cost.

Stock Investments Account

An account on the balance sheet that represents the cost of buying and holding shares of another company.