If the Interest Rate Is 5%, in One Period the Future

question 118

Multiple Choice

If the interest rate is 5%, in one period the future value of $1 today is:

• A) $1.20.
• B) $1.05.
• C) 95 cents.
• D) 20 cents.
• E) 5 cents.

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Definitions:

Canadian Dollar

The currency of Canada, represented by the symbol CAD or C$ and divided into 100 cents.

Exchange Rate

The rate at which one currency can be exchanged for another, which impacts international trade and investments.

Television Set

An electronic device designed to receive and display television broadcast signals and other audio-visual content.

CAD

Stands for Computer-Aided Design, a type of software used for creating precise drawings or technical illustrations in various engineering fields.