The Present Value of £2,000 to Be Received Each Year

question 50

Multiple Choice

The present value of £2,000 to be received each year for three years and earning a 10 per cent return is

• A)£5,560.
• B)£4,974.
• C)£4,922.
• D)£4,600.

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Definitions:

Scatter Diagram

A graphical representation that displays the relationship between two quantitative variables, using dots to represent individual data points.

Linear Model

A statistical model that assumes a linear relationship between input variables (independent variables) and a single output variable (dependent variable).

Allman Brothers

A renowned American rock band formed in 1969, known for their significant contribution to the development of Southern rock music.

Slope

The measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.