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

question 155

Multiple Choice

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

• A)A payment of $1,000 to be received one year from today,with a 8 percent interest rate,has a present value of $945.45.
• B)A payment of $1,000 to be received one year from today,with a 9 percent interest rate,has a present value of $911.11.
• C)A payment of $1,000 to be received one year from today,with a 10 percent interest rate,has a present value of $905.06.
• D)None of the above are correct to the nearest cent.

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Definitions:

Marketing Mix

The mix of variables a company can manage to encourage customers to buy its goods, typically known as product, price, distribution, and marketing.

New-Product Protocol

A formal guideline or set of rules that outlines the process for developing and launching new products.

Target Market

A specific group of potential consumers at whom a company aims its products or services.

Federal Trade Commission (FTC)

A U.S. federal agency responsible for protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.