Use the Table for the Question(s) Below -The Present Value (PV) of Receiving $1000 Per Year with Structure

question 6

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
$\begin{array} { l c c c c c c } \hline \text { Term } & \text { 1 year } & \text { 2 years } & \text { 3 years } & \text { 5 years } & \text { 10 years } & \text { 20 years } \\\hline \text { Rate } & & & & & & \\( \text { EAR\%) } & 5.00 \% & 4.80 \% & 4.60 \% & 4.50 \% & 4.25 \% & 4.15 \% \\\hline\end{array}$
-The present value (PV) of receiving $1000 per year with certainty at the end of the next three years is closest to:

• A) $2723
• B) $2733
• C) $2744
• D) $2737

---

Definitions:

Caretakers' Stress

The emotional and physical strain experienced by individuals who provide care for others, such as elderly or disabled family members.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, often leading to acute intoxication and poor judgment.

Problem Drinking

A pattern of alcohol consumption that negatively impacts one’s health, social relationships, or responsibilities.

Alcoholism

A chronic condition characterized by an uncontrollable urge to consume alcohol despite adverse consequences to health, social life, and personal responsibilities.