Which of the Following Amounts Is Closest to the Present

question 31

Multiple Choice

Which of the following amounts is closest to the present value of a payment of $21,000 three years from now if the effective annual interest rate is 4%?

• A) $18,669
• B) $18,658
• C) $19,218
• D) $18,480
• E) $17,951

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Definitions:

Cultural Context

The set of social, historical, and cultural circumstances surrounding an event, story, or development, influencing its interpretation or perception.

Successful Intelligence

A theory that intelligence involves a combination of analytical, creative, and practical abilities that enable one to achieve personal success.

Spatial Intelligence

The ability to visualize with the mind's eye, allowing individuals to solve problems involving physical spaces, shapes, or forms.

Bodily-kinesthetic

Relating to the intelligence that involves the control of one's bodily motions and the capacity to handle objects skillfully.