What Is the Approximate Present Value of a Future Income

question 28

Multiple Choice

What is the approximate present 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 6.75 percent?

• A)$2,814
• B)$2,636
• C)$2,882
• D)$3,205

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Definitions:

Certainty

The state of being sure or confident about something, often used in decision-making processes.

Certainty

The state of being sure or confident about something, often without doubt or question.

Micro

Refers to small-scale, often detailed or specific considerations or processes in a given context.

Macro Concept

A broad idea or principle that applies to large-scale phenomena or systems.