A Business Promises to Pay the Investor of $2000 Today

question 28

Multiple Choice

A business promises to pay the investor of $2000 today for a payment of $500 in one year's time,$1000 in two years' time and $1000 in three years' time.What is the present value of this business opportunity if the interest rate is 5% per year?

• A)$247.06
• B)$253.78
• C)$256.88
• D)$261.07

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Definitions:

Strengthen Relationship

The act of deepening bonds between individuals through communication, shared experiences, trust, and understanding.

Parenting Skills

Abilities and knowledge necessary for raising children, including providing for their physical and emotional needs, discipline, and education.

Monitoring

The continuous or regular observation and recording of activities or processes to ensure they are proceeding as planned or to gather information.

Modesty

The quality of being modest; having a reserved or humble opinion of oneself or one's abilities.