If the Interest Rate Is 7 Percent, What Is the Current

question 17

Multiple Choice

If the interest rate is 7 percent, what is the current value of $80 to be received one year from now?

• A) $47.05
• B) $74.77
• C) $85.60
• D) $136

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Definitions:

Ambiguity

The quality of being open to more than one interpretation; lack of definitiveness or clarity.

Synonymy

The attribute of two or more words having the same or nearly the same meaning.

Infinite Combinations

The concept that elements can be combined in limitless ways to create new ideas or solutions.

Productive

Referring to the ability to generate or create new ideas, objects, or processes that are useful or valued.