If the Current Rate of Interest Is 8%,then the Present

question 64

Multiple Choice

If the current rate of interest is 8%,then the present value of an investment that pays $1000 per year and lasts 20 years is closest to:

• A)$18,519.
• B)$45,761.
• C)$9818.
• D)$20,000.

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Definitions:

Ratio Data

A type of quantitative data that not only allows for comparison of amounts but also involves a natural zero point, allowing for statements of multiplicity.

Material Costs

The expenses incurred for materials that are directly used in the production of goods or services.

Specified Characteristics

Detailed attributes or features that are identified as requirements or standards for a particular object, process, or service.

Nominal

Relating to names or categories that are only labeled and do not have an inherent order or rank.