What Is the Economic Value Today of 24 Monthly Payments

question 93

Multiple Choice

What is the economic value today of 24 monthly payments of $500 with the first payment occurring 10 months from today? Assume that money can earn 12% compounded monthly.

• A) $9,711.84
• B) $8,973.34
• C) $10,621.69
• D) $9,615.68
• E) $13,486.73

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Definitions:

Independent Variable

In a study, the variable that the researcher alters or adjusts to study its impacts on the dependent variable.

Dependent Variable

In experimental and statistical research, the variable being tested and measured, which is expected to change under the influence of the independent variable.

Artificial Settings

Environments created or manipulated by researchers to study behavior in controlled conditions, which may not perfectly mimic real-life situations.

Experimental Method

A research methodology involving the manipulation of variables to determine cause-and-effect relationships.