Compute the Present Value of a $2,500 Deposit in Year

question 79

Multiple Choice

Compute the present value of a $2,500 deposit in year 4 and another $10,000 deposit at the end of year 8 if interest rates are 15 percent.

• A) $4,211.26
• B) $4,572.19
• C) $4,698.40
• D) $4,901.57

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Definitions:

Social Security

Social Security is a government program that provides financial assistance to retirees, disabled workers, and survivors of deceased workers, primarily funded through payroll taxes.

Retire Later

The decision or trend of extending one's career or working life beyond the traditionally accepted retirement age.

Unretired Individuals

Persons who are of an age traditionally associated with retirement but choose to remain in the workforce either full-time or part-time.

Economic Theory

A set of principles and methodologies that economists use to explain and predict economic patterns and behaviors.