A Bank Lends Some Money to a Business

question 41

Multiple Choice

A bank lends some money to a business. The business will pay the bank a single payment of $176,000 in ten years' time. How much greater is the present value (PV) of this payment if the interest rate is 9% rather than 8%?

• A) $7178
• B) $5742
• C) $8613
• D) $10,049

---

Definitions:

Statistical Significance

Indicates whether the results of a study are likely to be due to chance or are actually significant in terms of supporting a hypothesized effect.

T Value

A statistic calculated in hypothesis testing used to compare the observed difference between two means relative to the variability of the data.

Z-Test

A statistical test used to determine if there is a significant difference between sample and population means.

Population's Standard Deviation

A measure of the dispersion or variation in a distribution of a population's values, indicating how much individual scores differ from the population mean.