What Is the Present Value of $12,500 to Be Received

question 71

Multiple Choice

What is the present value of $12,500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $1.00.

• A) $5,790
• B) $11,574
• C) $9,210
• D) $17,010

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Definitions:

American Businesses

Companies and enterprises operating in the United States, contributing to its economy.

One-third

One-third refers to a fraction, specifically the division of something into three equal parts, and it is often encountered in legal contexts regarding division of assets or liabilities.

Uniform Partnership Act

A model set of laws intended to standardize the governance of business partnerships within the United States.

UPA

Uniform Partnership Act; a set of laws adopted by many states in the U.S. that governs the operations of partnerships and the relationships between partners.