If You Will Receive $5, 000 Two Years from Today

question 109

Multiple Choice

If you will receive $5, 000 two years from today, what is its present value if the discount rate is 5 percent?

• A)$5, 025
• B)$4, 500
• C)$3, 429
• D)$4, 535
• E)$4, 762

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Definitions:

Nineteenth Century

The period from January 1, 1801, to December 31, 1900, marked by significant social, political, and industrial changes worldwide.

Freedom of Contract

A principle that individuals have the liberty to form, define, and enforce contracts without unnecessary intervention from the government.

Employers

Individuals or organizations that hire and provide work to employees in exchange for their services.

Craft Unions

Labor unions that represent workers skilled in a particular craft or trade, focusing on specific skill sets and occupations.