How Much Would $20,000 Due in 50 Years Be Worth

question 60

Multiple Choice

How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

• A) $618.45
• B) $656.09
• C) $451.74
• D) $537.78
• E) $661.47

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Definitions:

Proprietors' Income

The income earned by the owners of unincorporated businesses.

Capitalist Income

The earnings from capital investment, including profits, interest, and dividends, attributed to owners in a capitalist economy.

Unionism

The principles, practices, or the system of forming and belonging to a labor union to protect and further the rights and interests of workers.

Normal Profit

The payment made by a firm to obtain and retain entrepreneurial ability; the minimum income that entrepreneurial ability must receive to induce entrepreneurs to provide their entrepreneurial ability to a firm; the level of accounting profit at which a firm generates an economic profit of zero after paying for entrepreneurial ability.