Suppose You Will Receive $500 at Some Point in the Future.If

question 27

Multiple Choice

Suppose you will receive $500 at some point in the future.If the annual interest rate is 7.5 percent,then the present value of the $500 is

• A)$411.26 if the $500 is to be received in 5 years and $338.95 if the $500 is to be received in 10 years.
• B)$348.28 if the $500 is to be received in 5 years and $242.60 if the $500 is to be received in 10 years.
• C)$291.11 if the $500 is to be received in 5 years and $272.89 if the $500 is to be received in 10 years.
• D)$291.11 if the $500 is to be received in 5 years and $236.49 if the $500 is to be received in 10 years.