What Is the Present Value (PV)of an Investment That Will

question 3

Multiple Choice

What is the present value (PV) of an investment that will pay $400 in one year's time,and $400 every year after that,when the interest rate is 5%?

• A)$2400
• B)$3600
• C)$7200
• D)$8000

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Definitions:

Distribution

The arrangement of values of a variable showing their observed or theoretical frequency of occurrence.

Variation

The occurrence of differences or changes in the characteristics of organisms or objects within a population or set.

Extreme Scores

Data points in a set that are significantly higher or lower than the majority.

Stereotype

A common, yet rigid and simplified perception or conception of a specific kind of individual or object, usually formed from insufficient data.