Max Says That the Present Value of $500 to Be

question 269

Multiple Choice

Max says that the present value of $500 to be received one year from today if the interest rate is 8 percent is more than the present value of $500 to be received two years from today if the interest rate is 4 percent.Mitch says that $500 saved for two years at an interest rate of 3 percent has a larger future value than $500 saved for one years at an interest rate of 6 percent.

• A) Both Max and Mitch are correct.
• B) Only Max is correct.
• C) Only Mitch is correct.
• D) Neither Max nor Mitch is correct.

---

Definitions:

Longitudinal Study

A research design involving repeated observations of the same variables (subjects) over short or long periods of time, often years or decades.

Early Weaning

The process of introducing a baby to foods other than breast milk or formula before the typical age.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behavior, thoughts, and emotions.

Motor Freedom

The ability to move freely without physical limitation, emphasizing the importance of motor skills development and autonomy in movement.