Suppose You Have $1000 Today and the Risk-Free Rate of Interest

question 39

Multiple Choice

Suppose you have $1000 today and the risk-free rate of interest (rf) is 3.5%.The equivalent value in one year is closest to:

• A)$965.00.
• B)$966.18.
• C)$1000.00.
• D)$1035.00.

---

Definitions:

Wheelchair

A chair fitted with wheels, designed to be a mobility aid for people who are unable to walk or have difficulty walking.

Examination Table

A table used in medical settings for patient examinations and treatments.

Table Paper

Disposable paper used to cover examination tables in medical settings for hygiene purposes.

Dowel

A cylindrical rod, usually made of wood, metal, or plastic, used to reinforce joints or support shelves and other structures.