Assume the Current Interest Rate Is 20

question 130

Multiple Choice

Assume the current interest rate is 20%. The present value of $500 in one year would be

• A) $180.
• B) $417.
• C) $750.
• D) $1,083.

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Definitions:

Return to Risk Ratio

A financial metric that compares the amount of return gained on an investment to the level of risk taken in achieving that return.

S Index Fund

A type of mutual fund or exchange-traded fund (ETF) that replicates the performance of a specific benchmark index, often used for passive investing.

PHStat

An Excel add-in program that enhances the statistical analysis capabilities of Microsoft Excel, often used for educational purposes or in decision-making processes.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset deviate from the mean.