On January 1, 2009, You Are Considering Making an Investment

question 38

Multiple Choice

On January 1, 2009, you are considering making an investment that will pay three annual payments of $10,000. The first payment is not expected until December 31, 2011. You are eager to earn 3%. What is the present value of the investment on January 1, 2009?

• A)$26,662.
• B)$27,462.
• C)$28,286.
• D)$29,135.PVA = $10,000 x ( 4.57971* - 1.91347**) = $26,662 *PVA of $1: n=5; i=3% **PVA of $1: n=2; i=3%

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Definitions:

Central Nervous System

The complex of nerve tissues that controls the activities of the body, principally the brain and spinal cord.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.