If a single future amount of $800 is to be received in 3 years and discounted at 6%, its present value is

$754.72.

$693.36.

$752.00.

$671.70.

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A $50,000, 5-year note payable that pays 8% interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period and interest combinations?

5 interest periods and 8% interest.

20 interest periods and 8% interest.

20 interest periods and 2% interest.

5 interest periods and 2% interest

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The amount of interest involved in any financing transaction is based on each of the following except the

interest rate.

time.

principal.

present value of 1 factor.