If the Current Rate of Interest Is 8%, Then the Present

question 47

Multiple Choice

If the current rate of interest is 8%, then the present value (PV) of an investment that pays $1200 per year and lasts 24 years is closest to ________.

• A) $7581
• B) $15,162
• C) $12,635
• D) $17,689

---

Definitions:

Density

A physical property that denotes the mass of a substance per unit volume.

Volume

The space occupied by an object or substance, or encased within a holding device.

Mass

Mass is a measure of the amount of matter in an object, usually in kilograms or grams.

Liquids

A state of matter characterized by an indefinite shape that conforms to the shape of its container, but with a definite volume.