An Investment Is Expected to Yield $300 in Three Years,$500

question 45

Multiple Choice

An investment is expected to yield $300 in three years,$500 in five years,and $300 in seven years.What is the present value of this investment if the annual interest rate is 5%?

• A)$735
• B)$865
• C)$885
• D)$900

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Definitions:

Service Companies

Businesses that provide intangible products, such as expertise, experience, and activities, to consumers or other businesses in exchange for payment.

Venmo

A mobile payment service that allows users to transfer money to one another, typically using a mobile phone app.

PayPal

An online payment platform that enables users to make financial transactions and payments over the internet easily and securely.

Zelle

A digital payments network that allows users to send and receive money directly between bank accounts in the U.S. instantly.