An Investment Paying $1000 in 1 Year,$2000 in 2 Years

question 27

Multiple Choice

An investment paying $1000 in 1 year,$2000 in 2 years and $7000 in 3 years returning 10% per annum has a present value of:

• A)$8129.39.
• B)$6002.54.
• C)$7210.20.
• D)$7821.19.

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Definitions:

Step-Up Transformer

A transformer that produces a higher voltage at its secondary than is applied to its primary.

Secondary Voltage

The voltage output by the secondary winding of a transformer or another type of electrical converter, which has been transformed from the primary voltage.

Primary Voltage

The voltage supplied to the primary winding of a transformer, which induces a secondary voltage in accordance with the transformer's winding ratio.

Flux Leakage

The number of magnetic flux lines that radiate into space and do not cut through the conductors of an inductor or secondary winding of a transformer.