If the Interest Rate Is 7

question 140

Multiple Choice

If the interest rate is 7.5 percent,then what is the present value of $4,000 to be received in 6 years?

• A)$2,420.68
• B)$2,591.85
• C)$2,996.33
• D)$3,040.63

---

Definitions:

Courtship

the period in a couple's relationship which precedes their engagement and marriage, or establishment of an agreed relationship of a more enduring kind.

Establish Intimacy

The process of forming a close, personal relationship or emotional connection with someone.

Triangular Theory

Often associated with the triangular theory of love, which proposes that love consists of three components: intimacy, passion, and commitment.

Companionate Love

A form of love characterized by deep affection, emotional closeness, and a strong bond, often found in long-term relationships.