At an Interest Rate of 3%, What Is the Present

question 28

Multiple Choice

At an interest rate of 3%, what is the present value of $1000 to be received five years from now?

• A)$863
• B)$1667
• C)$1159
• D)$850

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Definitions:

Cost of Living

The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a particular place and time.

Duration of Agreement

The period of time for which a contract or agreement is effective, usually marked by a start and end date.

Legal Recognition

The formal acknowledgment by governmental or authoritative bodies of the validity and protected status of entities, relationships, or rights.

Authorization Card Signatures

Signatures collected on cards used in the process of forming or joining a union, indicating the signatory's support for union representation.