What Is the Present Value of $12,500 to Be Received

question 71

Multiple Choice

What is the present value of $12,500 to be received 10 years from today? Assume a discount rate of 8% compounded annually and round to the nearest $1.00.

• A) $5,790
• B) $11,574
• C) $9,210
• D) $17,010

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Definitions:

Conclusion

The final part of something, such as an argument or text, summarizing or deducing the outcomes based on the preceding information.

Direct Observation

A research method involving the direct and unobtrusive observation of individuals or phenomena in their natural setting.

Chemical Make-up

Refers to the composition of a substance, detailing its various chemical elements and compounds.

Produces Heat

A process or object that generates thermal energy.