Multiple Choice Question The present value of $$ \$ 1,000 $$ in 3 years represents the amount you pay 0 now to have $$ \$ 1,000 $$ in year 3 0 now to earn more than $$ \$ 1,000 $$ in year 3 0 in year 3 to earn more than $$ \$ 1,000 $$ 0 in year 3 to earn $$ \$ 1,000 $$

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To determine the correct answer, we need to understand the concept of present value (PV). Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

In this case, we are looking at the present value of $$ \$ 1,000 $$ in 3 years. This means we want to find out how much money we need to invest now (at present) to have $$ \$ 1,000 $$ in 3 years, considering a certain interest rate.

Let's analyze the options:

1. **0 now to have $$ \$ 1,000 $$ in year 3**: This option suggests that you pay nothing now to receive $$ \$ 1,000 $$ in the future, which is incorrect.

2. **0 now to earn more than $$ \$ 1,000 $$ in year 3**: This option also implies that you pay nothing now to earn more than $$ \$ 1,000 $$, which is incorrect.

3. **0 in year 3 to earn more than $$ \$ 1,000 $$**: This option suggests that you would pay nothing in year 3 to earn more than $$ \$ 1,000$$, which is incorrect.

4. **0 in year 3 to earn $$ \$ 1,000 $$**: This option implies that you would pay nothing in year 3 to earn $$ \$ 1,000$$, which is also incorrect.

The correct interpretation of present value is that you need to pay a certain amount now (the present value) to receive $$ \$ 1,000 $$ in the future. Therefore, none of the provided options accurately describe the concept of present value.

However, if we were to choose the closest option based on the understanding of present value, it would be the first option, but it is still incorrect as it states "0 now," which is misleading.

In conclusion, the correct answer is that you need to pay a certain amount now to have $$ \$ 1,000 $$ in year 3, but none of the options provided accurately reflect this.
You need to pay a certain amount now to have \$1,000 in 3 years. None of the options correctly describe this.

Multiple Choice Question The present value of \( \$ 1,000 \) in 3 years represents the amount you pay 0 now to have \( \$ 1,000 \) in year 3 0 now to earn more than \( \$ 1,000 \) in year 3 0 in year 3 to earn more than \( \$ 1,000 \) 0 in year 3 to earn \( \$ 1,000 \)

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