What Is the Present Value of $500 to Be Received

question 265

Multiple Choice

What is the present value of $500 to be received eight years from now if the interest rate is 5 percent?

• A) $300
• B) $338.42
• C) $700
• D) $738.72

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Definitions:

Esophageal Stricture

The narrowing of the esophagus, which can cause swallowing difficulties, often resulting from inflammation or scarring.

Chemical Pneumonia

Lung inflammation caused by inhalation of chemical irritants, leading to symptoms like coughing, chest pain, and breathing difficulties.

Lead-Based Paint

Paint that contains lead, a toxic metal, used in many homes before the 1978 U.S. ban, and can cause health problems if ingested or inhaled.

Acute Childhood

Refers to the sudden onset of disease or medical conditions during childhood.