Use the Table for the Question(s)below

question 30

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
-The present value of receiving $1000 per year with certainty at the end of the next three years is closest to:

• A)$2737.
• B)$2723.
• C)$2733.
• D)$2744.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after subtracting liabilities, representing the ownership stake of shareholders.

Investment Account

An account held at a financial institution that holds securities, cash, and other investments, used for the purpose of long-term or short-term investing.

Carrying Value

The amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Inventory

Goods and materials that a business holds for the ultimate goal of resale.