At Which Interest Rate Is the Present Value of $185

question 49

Multiple Choice

At which interest rate is the present value of $185.71 three years from today equal to $175 today?

• A)2 percent
• B)4 percent
• C)6 percent
• D)8 percent

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Definitions:

National Hospice and Palliative Care Organization

A non-profit organization in the United States that advocates for quality hospice and palliative care for individuals facing serious illness and death.

Terminally Ill

Refers to a person suffering from a disease that is incurable or untreatable and is expected to lead to the death of the individual in the near future.

Hospice

A type of care and a philosophy of care that focuses on the palliation of a terminally ill patient's symptoms, which can be physical, emotional, and spiritual.

Family Burden

The emotional, financial, and physical demands and stressors placed on family members by the illness or disability of another family member.