The Present Value of $100 to Be Received One Year

question 79

Multiple Choice

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

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

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Definitions:

Standard of Living

The degree of wealth and material comfort available to a person or community.

Aggregate Expenditures

are the total amount of spending on goods and services in an economy at a given level of income during a specified period.

Recession

A phase of short-term economic downturn characterized by decreased trading and industrial output, generally recognized by a drop in Gross Domestic Product across two consecutive quarters.

National Debt

The aggregate financial obligations incurred by a government of a country through borrowing.