Which of the Following Amounts Is Closest to the Present

question 31

Multiple Choice

Which of the following amounts is closest to the present value of a payment of $21,000 three years from now if the effective annual interest rate is 4%?

• A) $18,669
• B) $18,658
• C) $19,218
• D) $18,480
• E) $17,951

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Definitions:

Invasion Of Privacy

An act that intrudes upon the personal life of an individual without their consent, typically affecting their rights to solitude, private information, or personal space.

Intentional Tort

A civil wrong resulting from an intentional act on the part of the tortfeasor (wrongdoer).

Unintentional Tort

A civil wrong resulting from an act that was not intended to cause harm but did so, leading to legal liability for the unintended consequences.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.