Given a 5 Percent Interest Rate, Compute the Present Value

question 36

Multiple Choice

Given a 5 percent interest rate, compute the present value of deposits made in years 1, 2, 3, and 4 of $1,000, $1,400, $1,400, and $1,500.

• A) $4,360.32
• B) $4,665.65
• C) $5,047.62
• D) $5,305.00

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Definitions:

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others.

Composition

The way in which something is made up or formed, including the structure or arrangement of its parts.

Cohesiveness

The degree to which members of a group are attracted to and motivated to stay part of that group.

Entitativity

The degree to which a group is perceived as being a coherent, distinct, and unified entity.