If the Interest Rate Is 7%, $500 Received at the End

question 98

Multiple Choice

If the interest rate is 7%, $500 received at the end of 9 years is worth how much today?

• A)500/(0.07)⁹.
• B)500/(1 + .07)⁹.
• C)500/(1 + 7)⁹.
• D)500.

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