The Table Below Shows Hypothetical Per- Minute Cell Phone Charges

question 23

Multiple Choice

The table below shows hypothetical per- minute cell phone charges for "pay- and- talk" service over several years. $$\begin{array}{l}\begin{array} { | l | l | } \hline 2005 & 0.55 \\\hline 2006 & 0.50 \\\hline 2007 & 0.40 \\\hline 2008 & 0.35 \\\hline 2009 & 0.25 \\\hline\end{array}\\\text { TABLE 2- } 2\end{array}$$
-Refer to Table 2- 2. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2007 is

• A) 1.375
• B) 137.5
• C) 0.72
• D) 72.73
• E) 100

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Definitions:

Present Discounted Value

The immediate value of a forthcoming sum of money or cash flow streams, discounted at a specific rate of return.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the return on invested capital.

South African Gold Strike

Refers to a period of labor strike within South Africa's gold mining sector, impacting production and potentially influencing global gold prices.

Mining Companies

Firms specialized in the extraction of minerals or other geological materials from the earth.