If the Present Value of the $1,000 to Be Received

question 6

Multiple Choice

If the present value of the $1,000 to be received in one year is $800,the interest rate is

• A)25 percent per year.
• B)8 percent per year.
• C)10 percent per year.
• D)12 percent per year.
• E)125 percent per year.

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Definitions:

Carbon Dioxide

A colorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Binary Mixture

A mixture composed of only two components or substances in any proportion, without any chemical bonding.

Gunpowder

A mixture of saltpeter, sulfur, and charcoal, used historically as a propellant in firearms and fireworks.