The Present Value of $40,000 to Be Received in One

question 2

Multiple Choice

The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar)

• A) $37,736
• B) $42,400
• C) $40,000
• D) $2,400

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Definitions:

Fugitive Slaves

Escaped slaves from Southern plantations seeking freedom in the North or Canada especially during the 19th century before the abolition of slavery.

Industrialized

Refers to the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods. Individual manual labor is often replaced by mechanized mass production.

Literacy Rates

Literacy rates indicate the percentage of people in a specific age group who can read and write within a particular population.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman who escaped from slavery and became a leader of the abolitionist movement, advocating for the rights of African Americans.