You Are to Receive $12,000 at the End of 5

question 97

Multiple Choice

You are to receive $12,000 at the end of 5 years.The available yield on investments is 6%.Which table would you use to determine the value of that sum today?

• A) Present value of an annuity of $1
• B) Future value of an annuity
• C) Present value of $1
• D) Compound sum of $1

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Definitions:

Ronald Reagan

The 40th President of the United States, known for his economic policies known as Reaganomics, which focused on tax cuts, deregulation, and increased defense spending.

Marginal Tax Rate

Refers to the rate at which the next dollar of taxable income is taxed.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations must pay to the government.

Proportional

Proportional describes a relationship or ratio that maintains the same relative size or aspect between items or variables.