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The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the
The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is _____.
A. $2,500
B. $3,044
C. $6,516
D. $2,856
If a United States Savings bond can be purchased from $29.50 and has a maturity value of $1000 at the end of 25 years, what is the annual return on the bond?
A. 7%
B. 6%
C. 8%
D. 5%
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