You Are Given the Choice of Receiving $100 Today or $115

question 179

Multiple Choice

You are given the choice of receiving $100 today or $115 one year from today. What annual interest rate will make you indifferent between these two choices?

• A) 5%
• B) 10%
• C) 15%
• D) 20%

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Definitions:

Chisholm v. Georgia

Chisholm v. Georgia was a landmark 1793 Supreme Court case that established the right of individuals to sue states in federal court, later leading to the Eleventh Amendment limiting such suits.

Supreme Court

The highest judicial body in a country or jurisdiction, often having the final say in matters of law and constitutionality.

Federal Court

A court established by the federal government of a country that has jurisdiction over questions of federal law and constitutional matters.