The Present Value of $10,000 Discounted at 5% Per Year

question 92

Multiple Choice

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

• A) $10,000/1.25.
• B) $10,000(1.05)5.
• C) $10,000/(1.05)5.
• D) $10,000 (1.05)1/5.

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Definitions:

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion, where the arc length of each slice is proportional to the quantity it represents.

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In graphic design and web development, refers to segments or parts of an image or layout that are divided for optimization or usability purposes.

Chart

A graphical portrayal of information intended to simplify and convey complex data quickly and clearly.

Numeric Data

Information represented by numbers, used in calculations or statistical analysis, such as integers, decimals, and fractions.