The Present Value of $100 to Be Received One Year

question 26

Multiple Choice

The present value of $100 to be received one year from now,with an annual interest rate of 6%,is

• A)$94.00.
• B)$94.34.
• C)$95.27.
• D)$102.13.
• E)$106.00.

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often with the aim of reducing their consumption or generating revenue for the government.

Demand Curve

Demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing an inverse relationship.

Supply Curve

A graphical representation depicting the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale at that price.

Tax on Each Unit

A fixed amount of tax that is applied to each unit of a certain good or service that is sold.