If the Present Value of $100 Received One Year from Now

question 118

Multiple Choice

If the present value of $100 received one year from now is $80,what is the annual interest rate?

• A)8 percent
• B)10 percent
• C)20 percent
• D)25 percent
• E)50 percent

---

Definitions:

Understand

The ability to grasp the meaning, significance, or nature of something, including concepts, situations, or behaviors.

Persona

An aspect of an individual's character that is presented to or perceived by others, often considered as a social facade or role that one embodies in various contexts.

Mechanistic Behavior

Behavior explained through physical or mechanical processes, often neglecting emotional or psychological factors.

Mask

A facade or front that an individual presents to the world, often concealing their true thoughts or feelings.