What Is the Present Value of a $7,000 Payment Made

question 123

Multiple Choice

What is the present value of a $7,000 payment made in six years when the discount rate is 4 percent?

• A) $5,290.42
• B) $5,532.20
• C) $5,802.82
• D) $6,103.73

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Definitions:

Tropical Deciduous Forest

A biome located near the equator that experiences a season of heavy rain and a dry season, with trees that shed their leaves during the dry season.

Grasslands

Large open areas of land dominated by grasses, often serving as habitats for a variety of wildlife and used for agriculture.

Mountain Biomes

Ecosystems located in mountainous regions, often characterized by a variety of climates and biodiversity depending on altitude.

High-elevation

Referring to areas or locations that are situated at a high altitude above sea level.