What Is the Present Value of $300 Received at the Beginning

question 5

Multiple Choice

What is the present value of $300 received at the beginning of each year for five years? Assume that the first payment is not received until the beginning of the third year (thus the last payment is received at the beginning of the seventh year) .Use a 10% discount rate,and round your answer to the nearest $100.

• A)$1,100
• B)$1,000
• C)$900
• D)$1,200

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Definitions:

Invisible Hand

A metaphor introduced by Adam Smith to describe how individuals pursuing their own interests unintentionally benefit society as a whole.

Das Kapital

A foundational text in Marxist theory written by Karl Marx, critiquing the political economy and capitalism.

Karl Marx

A philosopher, economist, and revolutionary socialist from the 19th century recognized for his insights on capitalism and communism.

Largest Exporter

The country or entity that ships the largest volume of goods to international markets compared to others.