Compute the Present Value of $4,000 Paid in Five Years

question 134

Multiple Choice

Compute the present value of $4,000 paid in five years using the following discount rates: 10 percent in year 1, 2 percent in year 2, 12 percent in year 3, and 9 percent in years 4 and 5.

• A) $2,679.15
• B) $2,206.81
• C) $2,317.03
• D) $2,362.19

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Definitions:

Rawls

A reference to John Rawls, an influential American political philosopher known for his theories of justice and “the original position” in social contract theory.

Assigning Rights

The process of determining and allocating particular legal or moral entitlements or responsibilities to individuals or entities.

Distinguishing Features

Unique attributes or aspects that set someone or something apart from others in a noticeable way.

Rawls

American philosopher John Rawls is known for his contributions to political and moral philosophy, especially in his theory of justice as fairness.