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What Is the Present Value of a Payment of $5,000

Question 23

Multiple Choice

What is the present value of a payment of $5,000 at the end of one year and a second payment of $7,000 at the end of two years if the interest rate is 5 percent?


A) $10,985.14
B) $12,250.32
C) $11,111.11
D) $11,201.84

Correct Answer:

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