If the Current Rate of Interest Is 8%,then the Present

question 64

Multiple Choice

If the current rate of interest is 8%,then the present value of an investment that pays $1000 per year and lasts 20 years is closest to:

• A)$18,519.
• B)$45,761.
• C)$9818.
• D)$20,000.

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Definitions:

Economic Factors

Elements outside the business that affect its performance, including inflation, unemployment, economic growth, and exchange rates.

Foreign Currency Fluctuations

Variations in the value of one currency compared to another, which can impact international trade and investments.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Income Distribution

The way in which a nation’s total income is spread among its population.