The Present Value of $30,000 to Be Received in Two

question 8

Multiple Choice

The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

• A) $23,916
• B) $37,632
• C) $23,700
• D) $30,000

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Definitions:

Consumer Credit

Financing extended to consumers to allow them to purchase goods and services and repay the money over time.

Agricultural Purposes

Activities related to the cultivation of land, raising crops, and feeding, breeding, and managing livestock.

Fair Credit Reporting Act

U.S. federal legislation designed to promote accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.

Investigative Consumer Report

A detailed report about a consumer's character, general reputation, personal characteristics, or mode of living, obtained through personal interviews and other means.