What Is the Price Today of an Investment That Will

question 75

Multiple Choice

What is the price today of an investment that will pay the single sum of $20 000 after three and a half years if the discount rate is 7.64% per annum,compounded annually?

• A) $2743.37
• B) $15 456.89
• C) $15 780.00
• D) $16 036.48

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Definitions:

Electron

A minute particle of matter charged with the smallest known amount of negative electricity; opposite of proton.

Negative Electricity

An outdated term historically used to describe what is now known as the flow of electrons, or electric current, particularly in the context of static electricity.

Proton

A subatomic particle found in the nucleus of an atom, carrying a positive electrical charge.

Implants

Medical devices inserted into the body to replace missing parts, support bodily functions, or deliver medication.