If You Want to Know the Present Value of $10,000

question 15

Multiple Choice

If you want to know the present value of $10,000 received in one year,and the interest rate is 4 percent,what formula can you use?

• A)Present value equals $10,000 times 0.04.
• B)Present value equals $10,000 divided by 1.04
• C)Present value equals 1.04 divided by $10,000.
• D)Present value equals $10,000 times 1.04.

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Definitions:

Settled Agriculture

The practice of farming on permanent plots of land, allowing for the development of more stable and sustainable agricultural communities.

Complex Civilizations

Societies with highly developed cultural, political, and economic systems, characterized by urban development, social stratification, and forms of government.

Accumulating Wealth

The process of amassing resources or assets of value over time, typically for the purpose of securing financial stability or achieving economic power.

Algonquians

A group of Native American peoples speaking Algonquian languages, widespread across North America, particularly in the northeastern region.