What Is the Present Value of an Investment That Pays

question 19

Multiple Choice

What is the present value of an investment that pays $400 at the end of three years and $700 at the end of 10 years if the discount rate is 5%?

• A) $1,100.00
• B) $675.30
• C) $775.40
• D) $424.60

---

Definitions:

Dead-End Job

A job with little to no prospect for career growth or advancement.

Qualified Workforce

Personnel that possess the necessary skills, education, and experience required to perform the tasks of their respective jobs effectively.

Manager

An individual responsible for directing, controlling, and administering a group, project, or organization.

Maintaining

The process of keeping something in a condition of efficiency or preservation through continual repair or care.