Calculate the Present Value of an Asset Worth $2,000 Four

question 356

Multiple Choice

Calculate the present value of an asset worth $2,000 four years from now if the interest rate is 6 percent.

• A) $2,480
• B) $2,524.95
• C) $1,584.19
• D) $1,520

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Definitions:

GDP

Stands for Gross Domestic Product, which is the total value of all goods and services produced within a country's borders in a specific time period and a key indicator of economic health.

Net Exports

The financial difference between what a country sells abroad and what it buys from other countries, representing its trade balance.

Capital Depreciation

The decrease in value of physical assets over time due to use, wear and tear, or obsolescence.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a specific time period.