In future value or present value problems, unless stated otherwise, cash flows are assumed to be
A) at the end of a time period.
B) in the middle of a time period.
C) spread out evenly over a time period.
D) at the beginning of a time period.

Question

Quizplus · Accepted Answer

In future value or present value problems, cash flows are typically assumed to occur at the end of a time period unless otherwise specified. This is known as the end-of-period convention.

In Future Value or Present Value Problems, Unless Stated Otherwise