Present Value of 1 Future Value of 1

question 6

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 Patricia wants to invest a sum of money today that will yield $10,000 at the end of 6 years.Assuming she can earn an interest rate of 6% compounded annually,how much must she invest today?

• A)$7,050
• B)$9,400
• C)$6,000
• D)$8,836
• E)$8,306

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Definitions:

Tributary Indian Villages

Native American communities that were subjugated by colonial powers to pay tribute, either in goods or labor.

Conquistadors

The soldiers, explorers, and adventurers at the service of the Spanish and Portuguese Empires who established dominion over much of the Americas and Asia from the 15th to 17th centuries.

Voyages of Exploration

Expeditions undertaken from the late 15th century onwards by European powers to discover and map new lands, establishing trade routes and colonies.

Direct Access

The ability to approach or use a service or resource directly, without intermediary agents or systems.