The Present Value of a Sum of Money Is the Amount

question 22

Multiple Choice

The present value of a sum of money is the amount that must be invested now, at a given rate of interest, to produce the desired sum at a later date.Find the present value of $100,000 if interest is paid
At a rate of 5% per year, compounded semiannually, for 8 years.

• A)$46,319.35
• B)$67,362.49
• C)$67,683.94
• D)$53,390.82
• E)$5,408.79

---

Definitions:

Octopuses

Cephalopod mollusks with eight arms, known for their intelligence, ability to change color, and escape skills.

Earthworms

Terrestrial invertebrates that play a key role in soil aeration and nutrient recycling through their burrowing actions.

Typhlosole

An internal fold of the intestine or another structure that increases surface area for digestion and absorption in some animals.

Hermaphroditic

Type of animal that has both male and female sex organs.