What Is the Present Value of a Payment of $21,000

question 46

Multiple Choice

What is the present value of a payment of $21,000 three years from now if the effective annual interest rate is 4%?

• A) $17,951
• B) $18,480
• C) $18,658
• D) $18,669
• E) $19,218

---

Definitions:

Cramming

The practice of intensively studying or memorizing information in a short period, usually immediately before an examination.

Spacing Effect

A phenomenon in which learning is enhanced when study sessions are spaced out over time rather than crammed in a short period.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, leading to an inability to recall the recent past, while long-term memories from before the event remain intact.