Ashley, from Your Workbook, Has Discovered Another Wine, Wine D

question 30

Multiple Choice

Ashley, from your workbook, has discovered another wine, wine D.Wine drinkers are willing to pay 40 dollars to drink it right now.The amount that wine drinkers are willing to pay will rise by 20 dollars each year that the wine ages.The interest rate is 10%.How much would Ashley be willing to pay for the wine if he buys it as an investment? (Pick the closest answer.)

• A)93 dollars
• B)40 dollars
• C)200 dollars
• D)440 dollars
• E)71 dollars

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Definitions:

Customers List

A compiled record of individuals or entities that purchase goods or services from a business.

Delayed Charges

Charges for goods or services that are incurred at one time but billed at a future date.

While Entering Transactions

Refers to the act of recording financial events or changes in the financial status of a business at the time those transactions occur.

Accounts Receivable Aging Report

A report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.