Practice prompt · Q:time-value-of-money-and-financial-mathematics/timeline-001

Identify the controlled timeline

Formative item on valuation date, interval count, cash flow placement, and common date comparison.

Updated Sep 10, 2026 Review due Nov 7, 2026

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A $60,000 single sum is due three years after a stated valuation date. Which timeline correctly controls the fact pattern before selecting a formula?

Choose the best answer. A Set t = 0 at the stated valuation date, place the one target at t = 3, and count three annual intervals. B Place $20,000 at each of t = 1, 2, and 3 because the $60,000 target spans three years. C Count four annual periods because the timeline has labels 0, 1, 2, and 3. D No timeline is needed because equal USD amounts are comparable at any date.

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Answer: A

Choice A is correct. The valuation date, single target date, and three interval gaps are all explicit.