An Investment Is Expected to Yield $300 in Three Years

question 54

Multiple Choice

An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%?

• A) $735
• B) $865
• C) $885
• D) $900

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Definitions:

Classical View

A traditional perspective or theory in a specific field that has stood the test of time and forms the foundation for subsequent developments.

Triangle

A polygon with three edges and three vertices, representing the simplest form of a polygonal shape.

Bachelor

A man who has never been married; or a university degree traditionally awarded after completing undergraduate studies.

Game

A structured form of play, often undertaken for entertainment or fun, and sometimes used as an educational tool.