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

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Definitions:

Chamberlain

A senior official who manages the household of a monarch or noble, historically responsible for the private chambers and overseeing domestic affairs.

Curator

A professional in charge of managing, organizing, and overseeing a collection of artworks or artifacts in a museum, gallery, or similar institution, including the curation of exhibitions.

Artemisia Gentileschi

An Italian Baroque painter, significant for her paintings depicting strong and suffering women from myths and the Bible, notable in a period dominated by male artists.

Renowned

Known or talked about by many people; famous for something.