What Is the Present Value of a $7,000 Payment Made

question 123

Multiple Choice

What is the present value of a $7,000 payment made in six years when the discount rate is 4 percent?

• A) $5,290.42
• B) $5,532.20
• C) $5,802.82
• D) $6,103.73

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Definitions:

Enantiomers

Molecules that are mirror images of each other but cannot be superimposed upon one another, similar to left and right hands.

Polarimeter Tube

A component of a polarimeter used to measure the rotation of polarized light as it passes through an optically active substance.

Polarized Light

Light waves in which the vibrations occur in a single plane.

Racemic Mixture

A mixture containing equal amounts of left- and right-handed enantiomers of a chiral molecule, showing no optical activity as a whole.