If the Appropriate Interest Rate Is 8%,then Present Value of $500

question 40

Multiple Choice

If the appropriate interest rate is 8%,then present value of $500 paid at the end of each of the next 40 years is closest to:

• A)$23
• B)$5962
• C)$6439
• D)$20,0000

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Definitions:

Rounding Rules

Guidelines or conventions for approximating a numerical value to a desired level of precision, often to simplify calculations or presentation.

Rounded

The process of adjusting a numerical value to its nearest preferred value, often to a specified degree of precision.

Rounding Rules

Guidelines for adjusting the digits of numbers to a specific place value, often used to simplify numbers or to adhere to a level of precision.

Rounded

Adjusted to a simpler or more general form, often to the nearest whole number.