Compute the present value of $700 paid in three years using the following discount rates: 5 percent in the first year, 6 percent in the second year, and 7 percent in the third year.

$587.79

Explanation:

Data provided in the question

Amount paid in three years = $700

Discount rate in the first year = 5%

Discount rate in the second year = 6%

Discount rate in the third year = 7%

So by considering the above information, the present value is

= (Amount paid in three years) ÷ (1 + Discount rate in the first year × 1 + Discount rate in the second year × 1 + Discount rate in the third year)

=  ($700) ÷ (1 + 0.05 × 1 + 0.06 × 1 + 0.07)

= ($700) ÷ (1.05 × 1.06 × 1.07)

= $700 ÷ 1.19091

= $587.79

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

answer(b) revenue account which increases;