An Investor Can Invest $1000 at the Start of a Certain

question 70

Multiple Choice

An investor can invest $1000 at the start of a certain year,then $1000 the end of that year and the next year in a certain business.The business guarantees that the investor will receive a payment at the end of the year in five years.What is the future value (FV) of that payment if the investor is to break even,given that the discount rate over those five years is 6% per year?

• A)$2002
• B)$2681
• C)$3000
• D)$3792
• E)$3370

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Definitions:

Causal Explanation

The process of identifying the reasons or causes behind events, which explains why something happened.

Observer

An individual who watches or notices something or someone, often used in the context of scientific research to collect data.

Prosocial Behavior

Behavior that is intended to benefit other people.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative nature, often associated with higher levels of empathy and concern for others.