What Is the Approximate Present Value of $500 Four Years

question 192

Multiple Choice

What is the approximate present value of $500 four years from now if the interest rate is 2 percent?

• A)$462
• B)$508
• C)$510
• D)$541
• E)$485

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Definitions:

Sales Increased

An upward trend in the quantity or volume of goods or services sold by a business within a particular time frame.

CPI Increased

A rise in the Consumer Price Index, indicating a general increase in the prices of consumer goods and services.

4%

An interest rate or percentage representing a part of a whole, especially in the context of financial rates.

C$ Per US$

The exchange rate determining how much Canadian dollars (C$) you can exchange for one US dollar (US$).