Below Is a Table for the Present Value of $1

question 117

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:

Inductive Probe

A type of sensor used to measure variables such as displacement by generating an electromagnetic field.

Autoranging

A feature in electronic measurement devices that automatically adjusts the range for the best measurement scale.

DMMs

Digital Multimeters, versatile instruments used to measure electric voltage, current, resistance, and other values in circuits and systems.

Fluke Meters

Brand-specific electronic measuring instruments used for various electrical measurements, known for their reliability and precision.