Which One of the Following Would Have the Greatest Present

question 121

Multiple Choice

Which one of the following would have the greatest present value, assuming a positive discount rate?

• A) $1,000 today plus $100 a month for 2 years.
• B) $1,000 today plus $200 a month for a year.
• C) $1,000 today plus $400 a month for six months.
• D) $2,200 today plus $200 a month for six months.
• E) $2,200 today plus $100 a month for a year.

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Definitions:

Greater Than

Greater Than is a mathematical symbol (>) used to indicate that the value on the left side is larger than the value on the right side.

Undifferentiated Targeting Strategy

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

Marketers

Professionals involved in the process of promoting, selling, and distributing a product or service.

Pencils

Writing instruments made of graphite (or a similar substance) encased in wood or a mechanical holder, used for drawing or writing.