Assume the Current Interest Rate Is 25

question 137

Multiple Choice

Assume the current interest rate is 25%. The present value of $1,000 in one year would be

• A) $180.
• B) $450.
• C) $750.
• D) $800.

---

Definitions:

Voltage Difference

The difference in electric potential between two points in an electrical circuit.

Dielectric

A non-conducting material that can be polarized by an external electric field, commonly used as an insulating material between conducting surfaces.

Metal Conductors

Materials that allow the flow of electrical current due to their free electron movement.

Insulating Material

Materials that hinder the flow of electric current, used to protect against electrical shocks and to contain electrical wiring.