In Calculating the Present Value of $1,000 to Be Received

question 14

Multiple Choice

In calculating the present value of $1,000 to be received 5 years from today, the discount factor has been calculated to be .7008. What is the apparent interest rate?

• A) 5.43%
• B) 7.37%
• C) 8.00%
• D)9.50%

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Definitions:

Information Overload

A state of having too much information to process, often leading to difficulty in decision-making and increased stress.

Oral Communication

The exchange of information or ideas through spoken words, as opposed to written or non-verbal communication.

Precise Information

Data or details that are exact, accurate, and clearly expressed, leaving little to no room for ambiguity or doubt.

Filtering

The process of screening, selecting, or reducing information to manage what is passed through to avoid information overload or to emphasize certain data.