Using the Present Value Long-Hand Method,how Much Money Would Need

question 30

Multiple Choice

Using the present value long-hand method,how much money would need to be deposited to earn $5,000 in five years with a 5% interest rate compounded annually?

• A)$3,917.63
• B)$3,917.00
• C)$3,918.63
• D)$3,918.00

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Definitions:

Personal Property

refers to movable items owned by an individual or entity, as opposed to real property which includes land and buildings.

Real Property

Land and anything permanently affixed to it, such as buildings or trees, considered as a legal entity.

Converted

Changed or transformed in form, character, or function.

Estray Statutes

Laws governing the finding and reporting of lost or stray livestock or domestic animals.