If You Will Receive $5, 000 Two Years from Today

question 109

Multiple Choice

If you will receive $5, 000 two years from today, what is its present value if the discount rate is 5 percent?

• A)$5, 025
• B)$4, 500
• C)$3, 429
• D)$4, 535
• E)$4, 762

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Definitions:

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.

Aristotle

A Greek philosopher and polymath during the Classical period in Ancient Greece, one of the most influential figures in Western philosophy and science.

Equilateral Triangle

A polygon with three sides of equal length and three angles of equal measure, resulting in a symmetrical shape.