Present Value Factor for Reversion of $1 -Using Only the Information in the Table Above, Approximately How

question 21

Multiple Choice

Present Value Factor for Reversion of $1
$\begin{array}{cccccc}\text { Perlod } & 6 \% & 7 \% & 8 \% & 9 \% & 10 \% \\\hline 1 & .943396 & .934579 & .925926 & .917431 & .909091 \\2 & .889996 & .873439 & .857339 & .841680 & .826446 \\3 & .839619 & .816298 & .793832 & .772183 & .751315 \\4 & .792094 & .762895 & .713503 & .708425 & .683013 \\5 & .747258 & .712986 & .680583 & .644931 & .620921 \\6 & .704961 & .666643 & .630170 & .596267 & .564474\end{array}$
-Using only the information in the table above, approximately how much would you pay today for an investment that pays $0 annual interest, but earns 8% interest over the next four years and has a face value at maturity of $13,500?

• A) $8,000
• B) $9,000
• C) $10,000
• D) $11,000

---

Definitions:

Polygraph Evidence

Information obtained from a lie detector test, used as an investigative tool or in some jurisdictions as evidence in court.

APA

American Psychological Association, a professional organization representing psychologists in the United States.

Courts

Institutions dedicated to adjudicating legal disputes between parties and administering justice according to the law.

DEXA Scan

A medical imaging technique that uses very low doses of X-ray to measure bone mineral density, primarily used for diagnosing and tracking osteoporosis.