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

question 62

Multiple Choice

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

• A) $23
• B) $5,962
• C) $6,439
• D) $20,0000

---

Definitions:

Sterilization

A medical procedure that renders a person unable to reproduce, which can be achieved through surgical methods or other forms of contraception.

Scrotum

A pouch of skin that holds the two testes.

Vacuum Aspiration

A first-trimester form of abortion using vacuum suction to remove the conceptus and other tissue from the uterus.

Hysterectomy

A surgical procedure to remove a woman's uterus, which may also involve removing the ovaries and fallopian tubes.