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:

Lateral Thinking

A problem-solving technique that involves looking at situations or issues from a novel or unique perspective.

Alternative Ways

Various methods or approaches to achieve a goal or solve a problem.

Generating Ideas

The creative process of coming up with new concepts, solutions, or approaches.

IDEO Brainstorms

IDEO Brainstorms refer to the creative and collaborative idea generation sessions used by the design firm IDEO, emphasizing a human-centered approach and rapid prototyping.