The Table Above Shows the Interest Rates Available from Investing

question 91

Multiple Choice

The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $6000 at the end of each year for the next four years?

• A) $18,111
• B) $27,167
• C) $31,695
• D) $22,639

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Definitions:

Element

An element is a substance consisting of atoms which all have the same number of protons, classically considered the simplest substances that cannot be broken down using chemical reactions.

Isotope

Atoms of the same element that have the same number of protons but different numbers of neutrons, resulting in different mass numbers.

Magnesium

A chemical element with the symbol Mg and atomic number 12, known for its low density and high strength, used in alloys, fireworks, and medical applications.

Atomic Mass

The mass of an atom, typically measured in atomic mass units (amu) or daltons, representing the total mass of protons, neutrons, and electrons in the atom.