In Which of the Following Instances Is the Present Value

question 2

Multiple Choice

In which of the following instances is the present value of the future payment the largest?

• A)You will receive $1,000 in 5 years and the annual interest rate is 5 percent.
• B)You will receive $1,000 in 10 years and the annual interest rate is 3 percent.
• C)You will receive $2,000 in 10 years and the annual interest rate is 10 percent.
• D)You will receive $2,400 in 15 years and the annual interest rate is 8 percent.

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Definitions:

Controlling

is a management function that involves measuring performance, comparing it with goals, and taking corrective action as needed.

Initially Planned

The original strategy or intention devised during the preliminary phase of a project or endeavor.

Actually Accomplished

Refers to tasks or objectives that have been successfully completed or achieved.

Growth Stage

refers to a phase in the life cycle of a business or product characterized by rapid revenue and customer base expansion.