The Table Above Shows the Interest Rates Available from Investing

question 74

Multiple Choice

$\begin{array}{lcccc}\text { Term in years: } & \mathbf{2} & \mathbf{5} & \mathbf{1 0} & \mathbf{3 0} \\\hline \text { Rate: } & 2.25 \% & 3.125 \% & 3.5 \% & 4.375 \%\end{array}$ The table above shows the interest rates available from investing in risk-free Government securities with different investment terms. If an investment offers a risk-free cash flow of $100,000 in ten years' time, what is the present value (PV) of that cash flow?

• A) $80,051
• B) $70,892
• C) $73,512
• D) $78,320

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