If the Current Rate of Interest Is 8%, Then the Present

question 25

Multiple Choice

If the current rate of interest is 8%, then the present value (PV) of an investment that pays $1 000 per year and lasts 20 years is closest to:

• A)$18 519
• B)$9 818
• C)$45 761
• D)$20 000

---

Definitions:

Hybrid Atomic Orbitals

Orbitals that form from the combination of standard atomic orbitals, explaining the shape and bonding in molecules.

C-C

Refers to the covalent bond between two carbon atoms in organic chemistry.

σ Bond

The strongest type of covalent chemical bond formed by the head-on overlapping of atomic orbitals.

Allene

Organic compounds characterized by a cumulated diene system with two carbon-carbon double bonds.