In Which of the Following Instances Is the Present Value

question 2

Multiple Choice

In which of the following instances is the present value of the future payment the largest?

• A)You will receive $1,000 in 5 years and the annual interest rate is 5 percent.
• B)You will receive $1,000 in 10 years and the annual interest rate is 3 percent.
• C)You will receive $2,000 in 10 years and the annual interest rate is 10 percent.
• D)You will receive $2,400 in 15 years and the annual interest rate is 8 percent.

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Definitions:

Highest Rate

The maximum level or value that something can attain or has attained.

Tobacco Use

The practice of using tobacco products, such as smoking cigars, cigarettes, or utilizing smokeless tobacco.

Depression

A common mental disorder characterized by persistent sadness, lack of interest, and can include various emotional and physical problems.

Diseases

Disorders or conditions that negatively affect the structure or function of part or all of an organism, not directly resulting from physical injury.