What Is the Approximate Value of a Future Income Stream

question 183

Multiple Choice

What is the approximate value of a future income stream of three $1,000 payments to be received one, two, and three years from today if the interest rate is 5 percent?

• A)$864
• B)$1,633
• C)$2,723
• D)$5,062

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Definitions:

Global Economic Restructuring

The ongoing transformation of the world economy, emphasizing shifts in industry, technology, and labor markets.

Assembly-Line Work

A manufacturing process in which parts are added to a product in a sequential manner using a combination of human labor and machinery to efficiently create a finished product.

Economic Restructuring

The process of transforming the economic organization of a society, often involving shifts in types of employment, modifications in trade patterns, and changes in the level of technological innovation.

Basic Structure

The fundamental arrangements and institutions in a society, including its legal and political framework, that guide social relationships.