Below Is a Table for the Present Value of $1

question 161

Multiple Choice

Below is a table for the present value of $1 at compound interest. Below is a table for the present value of an annuity of $1 at compound interest.
Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the present value (rounded to the nearest dollar) of the investment cash inflows, (assuming an earnings rate of 12%) ?

• A) $20,352
• B) $3,969
• C) $22,190
• D) $21,259

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Definitions:

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Spinal Cord

A long, thin bundle of nervous tissue and support cells that extends from the brain down the vertebral column; it is central to transmitting neural signals between the brain and the rest of the body.

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.

Corpus Callosum

The large band of neural fibers connecting the two brain hemispheres and carrying messages between them.