If the Appropriate Interest Rate Is 8%,then Present Value of $500

question 40

Multiple Choice

If the appropriate interest rate is 8%,then present value of $500 paid at the end of each of the next 40 years is closest to:

• A)$23
• B)$5962
• C)$6439
• D)$20,0000

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Definitions:

Corrosive

Corrosive substances are those that can destroy or irreversibly damage another substance by chemical reaction upon contact.

Teratogen

An agent or factor that can cause malformation of an embryo or fetus, potentially leading to birth defects.

Birth Defects

Conditions that are present at birth, resulting in structural or functional anomalies that cause physical or mental disabilities; they can be caused by genetic factors, environmental exposure, or unknown reasons.

Poison

A substance that is capable of causing illness or death to living organisms when introduced or absorbed.