The Present Value of $1,000 to Be Received in 5

question 142

Multiple Choice

The present value of $1,000 to be received in 5 years is ________ if the discount rate is 12.78%.

• A) $368
• B) $494
• C) $548
• D) $687

---

Definitions:

Awash River

A major river in Ethiopia, which plays a crucial role in the agriculture, water supply, and ecosystem of the region.

Genus Homo

The genus Homo is a classification for the human species and its closest extinct relatives, characterized by bipedalism, larger brains compared to body size, and complex tool use.

Paleontologists

Scientists who study fossils to understand the history of life on Earth, including the evolution and extinction of species.

Continental Drift

A theory that explains the movement of the Earth's continents over geological time, leading to their current positions and formations.