What Is the Present Value of $ 2,000 of Cash

question 27

Multiple Choice

What is the present value of $ 2,000 of cash received each year for 5 years at a 6% discount rate?

• A) $ 11,144.65
• B) $ 8,424.73
• C) $ 7,472.60
• D) $ 10,600.00

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Definitions:

Caucasian American

A term often used to describe individuals in the United States who are of European descent.

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An individual's or family's economic and social position in relation to others, based on income, education, and occupation.

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Thin cylinders of finely cut tobacco rolled in paper, intended for smoking, associated with health risks.

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A process in which an investigator, called an experimenter, devises two different experiences for participants and then studies and compares the outcomes.