What Is the Present Value of $15,500 to Be Received

question 95

Multiple Choice

What is the present value of $15,500 to be received 12 years from today? Assume a discount rate of 7.5% compounded annually and round to the nearest $1.

• A) $5,790
• B) $6,508
• C) $7,210
• D) $9,010

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Definitions:

Independence

Independence in statistics means that two events have no influence on each other, indicating that the occurrence of one event does not affect the probability of the other occurring.

Level of Significance

The threshold used in statistical testing to determine whether the observed data is sufficiently inconsistent with the null hypothesis, commonly reported as a p-value.

Blood Type

A classification of blood based on the presence or absence of inherited antigenic substances on the surface of red blood cells.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender-diverse people.