Find the Present Value, Using the Present Value Formula and a Calculator

question 53

Multiple Choice

Find the present value, using the present value formula and a calculator. ​
Achieve $8,000 in two years at 4.5% simple interest.
​

• A) $6,560.00
• B) $7,280.00
• C) $720.00
• D) $8,791.21
• E) $7,339.45

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Definitions:

Manufacturing Industries

Sectors of the economy that use machinery, tools, and labor to produce goods for use or sale.

Pure Competition

A market structure characterized by a large number of small firms all producing homogeneous products and facing no barriers to entry or exit.

Utility-maximizing Consumer

A theoretical concept in economics where a consumer seeks to get the maximum satisfaction or utility from their available resources or budget.

Income

Income, particularly when earned regularly through employment or investment returns.