If the Present Value of $250 Expected One Year from Today

question 99

Multiple Choice

If the present value of $250 expected one year from today is $200, what is the one-year discount rate?

• A)10 percent
• B)20 percent
• C)25 percent
• D)30 percent

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Definitions:

Collective Security

An international agreement for mutual defense, where participating countries pledge mutual aid and protection in case any member is attacked.

World Court

Informally known as the International Court of Justice, it's the principal judicial organ of the United Nations, tasked with settling legal disputes between states.

Peace Movement

A social movement that seeks to achieve ideals such as the ending of a particular war (or all wars), minimize inter-human violence, and abolish weapons of mass destruction.

American Entry

The involvement or participation of the United States in a significant international event or conflict, such as World War I or World War II.