The Present Value of $100 to Be Received One Year

question 6

Multiple Choice

The present value of $100 to be received one year from now,with an annual interest rate of 8%,is

• A)$108.00.
• B)$92.59.
• C)$102.13.
• D)$85.73.
• E)$94.34.

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Definitions:

MBA Students

Individuals enrolled in a Master of Business Administration program, focusing on mastering business management skills.

Exponential Distribution

A continuous probability distribution used to model the time between events in a Poisson process, describing scenarios where events happen continuously and independently at a constant average rate.

One Parameter

Refers to statistical models or distributions that are characterized by a single variable that defines their behavior or shape.

Probability Distribution

A mathematical function that calculates the likelihood of various possible results in an experiment.