Present and Future Value Tables of $1 at 3% Are

question 35

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-On January 1, 2018, you are considering making an investment that will pay three annual payments of $10,000. The first payment is not expected until December 31, 2020. You are eager to earn 3%. What is the present value of the investment on January 1, 2018?

• A) $26,662.
• B) $27,462.
• C) $28,286.
• D) $29,135.

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Definitions:

Error

The discrepancy between the actual measurement and its real value.

Mean Square

A statistical measure of the average of squared differences from the mean, used in various analyses like variance and ANOVA.

Treatments

In experiments, treatments are the conditions applied to subjects or groups to determine their effect on outcomes of interest.

Mean Square

A statistical measure used in variance and regression analysis, representing the average of the squares of the differences between observed and expected values.