Author Question: The present value of a 100 three-year annuity due (first cash flow occurs today) discounted at a ... (Read 38 times)

tnt_battle · **on:** Jul 10, 2018

The present value of a 100 three-year annuity due (first cash flow occurs today) discounted at a rate of 10 is equal to ________.

A) 248.69
B) 273.55
C) 135.17
D) 300.00

Question 2

Centralized control over disbursements is assisted by which of the following cash management
techniques?

A) lockbox system B) zero balance accounts
C) payable-through drafts D) both B and C

Liamb2179 · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

Answer: B
Explanation: B)
PV = PMT (1 + r)1 = 100 (1.10)1 = 273.55.
MODE = BEGIN
INPUT 3 10 ? -100 0
KEY N I/Y PV PMT FV
CPT 273.55

Answer to Question 2

D