Using the Tables Above,what Would Be the Present Value of $15,000

question 161

Multiple Choice

Using the tables above,what would be the present value of $15,000 to be received at the end of each of the next 2 years,assuming an earnings rate of 6%?

• A) $27,495
• B) $26,040
• C) $30,000
• D) $25,350

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Definitions:

Consumer's Budget

The financial constraint or limit on the amount of goods and services a consumer is able to purchase, based on their income and the prices of goods and services.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected by changes in price.

Price Elasticity of Demand

A measure of how responsive the quantity demanded of a good is to a change in its price, often used to gauge the relative change in demand as a result of price fluctuations.

Soccer Balls

Spherical balls designed and used specifically for the sport of soccer.