An Investment Pays You $20,000 at the End of This

question 38

Multiple Choice

An investment pays you $20,000 at the end of this year,and $10,000 at the end of each of the four following years.What is the present value (PV) of this investment,given that the interest rate is 4% per year?

• A)$42,150
• B)$45,913
• C)$54,134
• D)$58,614

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Definitions:

Democracy

A form of government in which power is held by the people, either directly or through elected representatives.

Postmaterialist Argument

This argument suggests that as societies become more economically developed, their citizens increasingly prioritize values such as environmentalism, equality, and personal freedom over material or economic concerns.

Liberal Democracies

Political systems characterized by free and fair elections, rule of law, protection of rights and freedoms, and the separation of powers.

Youth

The period of development from childhood to adulthood, often focusing on teenagers and young adults, and characterized by physical, psychological, and social changes.