An Investment Will Pay You $100 in One Year and $200

question 66

Multiple Choice

An investment will pay you $100 in one year and $200 in two years. If the interest rate is 5%, what is the present value of these cash flows?

• A) $276.65
• B) 258.32
• C) $305.00
• D) $285.71

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Definitions:

Active Lifespans

Active lifespans indicate a period during which individuals engage in physical, social, and mental activities that promote health, well-being, and satisfaction across their lifetime.

Eating Disorders

Mental disorders characterized by abnormal or disturbed eating habits, which can negatively impact an individual's health and emotional well-being.

Causality

Causality is the relation between causes and effects, where one event (the cause) directly leads to another event (the effect).

Thrive

describes a state of flourishing or prospering, often characterized by success, development, or healthy growth in personal, professional, or biological contexts.