What Is the Present Value of $1,000 to Be Received

question 269

Multiple Choice

What is the present value of $1,000 to be received 2 years in the future with an interest rate of 8 percent?

• A) $857.34
• B) $925.93
• C) $1080.00
• D) $1166.40

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Definitions:

Coefficient Of Determination

A measure used in statistical analysis that assesses how well a model explains and predicts future outcomes, often represented as R^2.

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a linear relationship between two variables, ranging from -1 to 1, where values close to 1 or -1 indicate a strong linear relationship.

Linear Relationship

A type of relationship between two variables where the change in one variable is consistently associated with a change in the other variable in a manner that can be depicted with a straight line.

Coefficient Of Correlation

The coefficient of correlation is a statistical measure that calculates the strength and direction of a linear relationship between two variables.