Using the Following Partial Table of Present Value of $1

question 124

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received four years hence, with earnings at the rate of 10% a year:

• A) $13,660
• B) $12,720
• C) $15,840
• D) $10,400

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Definitions:

Rain

Precipitation in the form of liquid water drops that have a diameter greater than 0.5 millimeters, falling from clouds.

Miss Flight

Refers to failing to board an aircraft before its departure, often due to late arrival or other unforeseen circumstances.

Probability

An event's probability expressed through a numerical range starting at 0 and ending at 1.

Heavy Smoking

The practice of smoking cigarettes in large quantities, typically defined as smoking more than 20 cigarettes per day.