If the Interest Rate Is 10 Percent, What Is the Present

question 8

Multiple Choice

If the interest rate is 10 percent, what is the present value of $25,000 received two years from now?

• A)$20,000
• B)$20,661
• C)$30,250
• D)$30,000

---

Definitions:

Categories

Distinct groups or classes into which data or items can be divided based on shared characteristics or qualities.

Chi-square

A statistical test used to compare observed frequencies with expected frequencies for categorical variables to assess the likelihood of an association.

Parametric Statistics

A branch of statistics that assumes data comes from a type of distribution and makes inferences about the parameters of the distribution.

Sample Size

The number of observations or data points used in a study or analysis.