Present Value: Becky Sayers Wants to Buy a House in Six

question 14

Multiple Choice

Present value: Becky Sayers wants to buy a house in six years. She hopes to be able to put down $25,000 at that time. If the bank term deposit she wants to invest in will pay 7.5 percent annually, how much will she have to invest today? (Round to the nearest dollar.)

• A) $18,472
• B) $13,987
• C) $16,199
• D) $23,256

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Definitions:

Value of Change

The perceived benefit or importance of making alterations or modifications within an organization, project, or system to achieve improved outcomes.

Variable

An element, feature, or factor that is liable to vary or change.

Creativity-relevant Skill

Abilities that contribute to an individual's capacity to produce original and valuable ideas or solutions.

Modesty

A trait characterized by a lack of vanity or conceit, often involving a humble view of one's accomplishments or status.