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The Present Value of $10,000 Discounted at 5% Per Year

Question 42

Multiple Choice

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

A) $10,000(1.05) ⁵
B) $10,000 (1.05) ^1/5
C) $10,000/1.25
D) $10,000/(1.05) ⁵

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