Compute the Present Value of a $2,500 Deposit in Year

question 79

Multiple Choice

Compute the present value of a $2,500 deposit in year 4 and another $10,000 deposit at the end of year 8 if interest rates are 15 percent.

• A) $4,211.26
• B) $4,572.19
• C) $4,698.40
• D) $4,901.57

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Definitions:

Percent Body Fat

A measurement to assess the proportion of fat to the total body weight.

Variable Selection

The process of selecting a subset of relevant variables for use in model construction, to simplify the model and make it more interpretable.

Unexplained Variation

The portion of the total variation in a data set that is not accounted for by the statistical model being used.

P-value

The chance of getting results that are as extreme or more extreme than what was actually seen, assuming the null hypothesis holds.