What Would Be More Valuable, Receiving $1,895 Today or Receiving

question 28

Multiple Choice

What would be more valuable, receiving $1,895 today or receiving $3,450 in six years if interest rates are 8 percent?

• A) receiving $1,895 today
• B) receiving $3,450 in six years
• C) They are worth the same amount
• D) Need more information to make a determination.

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Definitions:

Government

The system or group of people governing an organized community, often a state, including institutions and officials that make and enforce laws.

Fuel Economy Standards

Regulations set by the government to improve the average fuel efficiency of cars and light trucks.

Market Economy

A system where the prices of goods and services are determined by supply and demand, rather than by government intervention.

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, nationality, disability, or sexual orientation rather than job performance or qualifications.