If the Current Rate of Interest Is 8% APR,then the Future

question 27

Multiple Choice

If the current rate of interest is 8% APR,then the future value of an investment that pays $500 every two years and lasts 20 years is closest to:

• A)$11,000.
• B)$10,661.
• C)$22,881.
• D)$20,000.

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Definitions:

Interest Revenue

The income a company receives from its investments in interest-bearing accounts or other instruments.

Carrying Value

The net amount of an asset or liability that is recorded on the financial statements, taking into account factors like depreciation or amortization.