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The Present Value That Will Give a Future Value S 1+r1 + r

Question 232

Multiple Choice

The present value that will give a future value S in 4 years with interest compounded annually varies inversely as the fourth power of 1+r1 + r r, where r is the annual interest rate. If the present value of $3.71 gives a future value
Of $5000, what would be the present value of $10,000? Round to the nearest dollar.


A) $8
B) $5
C) $7
D) $45

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