What Is the Present Value of $500

question 76

Multiple Choice

What is the present value of $500.00 to be paid in two years if the interest rate is 5 percent?

• A)$453.51
• B)$500.00
• C)$476.25
• D)$550.00

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Definitions:

Silica-rich Organisms

Refers to organisms that utilize silica (SiO2) in their structural makeup, often found in the cell walls or skeletons, such as diatoms and some sponges.

Chert Formation

The process by which chert, a hard, fine-grained sedimentary rock composed of microscopic silica particles, is formed, often in deep marine environments.

Seawater

A solution of various salts and minerals found in the world's oceans.

Sandstone Beds

Layers of sedimentary rock predominantly composed of sand-sized particles, often used as aquifers and in construction materials.