What Is the Present Discounted Value of $400 a Year

question 28

Multiple Choice

What is the present discounted value of $400 a year from now and $500 two years from now if the interest rate is 10%?

• A) $676.18
• B) $743.80
• C) $818.18
• D) $776.86

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Definitions:

Fearful

Feeling afraid or anxious; the emotional response to perceived threats or danger.

Agitated

A state of nervousness or unrest, often characterized by rapid movement or speaking.

Nonreactive

Describes a substance or individual that does not respond or change when exposed to another substance or a particular stimulus.

Extroverted

Characterized by an outgoing, socially confident personality, often seeking stimulation and enjoying the company of others.