Use the Following Timeline to Answer the Question(s)below

question 73

Multiple Choice

Use the following timeline to answer the question(s) below.
-At an annual interest rate of 7%,the present value of this timeline in year 0 is closest to:

• A)$3080.
• B)$3600.
• C)$3771.
• D)$4035.

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Definitions:

Marginal Tax Rate

The tax rate paid on the next dollar earned.

Average Tax Rate

Total amount of tax paid divided by total income.

Total Taxes

The aggregate amount of taxes collected by a government from individuals and businesses.

Taxable Income

The portion of an individual or entity's income that is subject to taxation, after deductions and exemptions, according to the law.