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

---

Definitions:

Tariffs

Taxes imposed on imported goods and services, intended to raise government revenue or protect domestic industries from foreign competition.

Trade Barriers

Measures implemented by countries to regulate or restrict international trade, including tariffs, quotas, and embargoes.

Fair Trade

A social movement aimed at helping producers in developing countries achieve better trading conditions and to promote sustainability.

Trade Agreements

Formal arrangements between countries that determine the terms of trade, tariffs, and duties, aimed at facilitating smoother and more efficient international commerce.