What Is the Present Value of a Payment of $21,000

question 46

Multiple Choice

What is the present value of a payment of $21,000 three years from now if the effective annual interest rate is 4%?

• A) $17,951
• B) $18,480
• C) $18,658
• D) $18,669
• E) $19,218

Identify the possibility of Type I and Type II errors in hypothesis testing.

Understand the use and interpretation of critical values in hypothesis testing.

Calculate the standard deviation and mean from sample data.

Understand the differences between one-tailed and two-tailed tests.