# prepetuities formula and calculations

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## Value of payment is $25 and an interest rate is 2%, then present value will be

- A. 12.5 dollars
- B. 0.0008 dollars
- C. 1,250 dollars
- D. 0.8 dollars
- Correct Answer: Option C

## Rate of return that an investment provides its investor is classified as

- A. investment return rate
- B. internal rate of return
- C. international rate of return
- D. intrinsic rate of return
- Correct Answer: Option B