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

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Definitions:

Empathy

The ability to understand and share the feelings of another person from their perspective.

Close-Ended Question

A type of question that is designed to elicit a limited range of responses, typically "yes" or "no".

Termination Phase

The final stage in a professional relationship or process, such as therapy or employment, marked by closure and conclusion of involved activities.

Concrete Information

Specific, clear, and detailed information that is easily understandable and factual.