What Is the Present Value of a $500 Deposit in Year

question 44

Multiple Choice

What is the present value of a $500 deposit in year 1, and another $100 deposit at the end of year 4 if interest rates are 5 percent?

• A) $480.00
• B) $493.62
• C) $558.46
• D) $582.27

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Definitions:

Regenerated Forest

Forests that have re-grown after a major disturbance, such as logging, fires, or clear-cutting, often with the intervention of human or natural processes.

Wilderness

A natural environment on Earth that has not been significantly modified by human activity, offering critical habitat for wildlife and opportunities for human recreation.

Clear-cutting Methods

Forestry practices involving the complete removal of all trees from a particular area, often used for timber extraction.

Agricultural Land

Land designated for agricultural purposes, including the cultivation of crops and rearing of animals, to produce food and other agricultural products.