Which Is the Smallest If the Interest Rate Is 8

question 39

Multiple Choice

Which is the smallest if the interest rate is 8 percent?

• A)$100 to be received after five years
• B)the present value of an annuity of $100 for five years
• C)$100 received in the present
• D)$100 received for two years

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Definitions:

Variable Costs

Variable costs are expenses that vary directly with the level of production or output, such as materials and labor used in the manufacturing process.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.

Long Run

The Long Run is a period in economics during which all factors of production and costs are variable, allowing for adjustment to changing market conditions.

Fixed Amount

A specific, unchanging quantity of something.