Money Is Worth 5% Compounded Semi-Annually

question 14

Multiple Choice

Money is worth 5% compounded semi-annually. What is the value today of a contract that will bring in a payment of $86,500 in nine years?

• A) $63,276
• B) $38,090
• C) $55,461
• D) $41,962
• E) $55,759

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Definitions:

Generated Revenue

The total amount of income produced from the sale of goods, services, or other capital activities within a given period.

Service Delivered

The act of providing a service to customers, encompassing everything from the initial offer to the end-user experience.

Profits Realized

The net income a company earns after all expenses, taxes, and costs have been deducted from total revenue, reflecting actual financial gain.

Dependability

The quality of being trustworthy and reliable, especially in delivering services or products.