If the Single Amount of $2000 Is to Be Received

question 70

Multiple Choice

If the single amount of $2000 is to be received in 2 years and discounted at 11% its present value is

• A) $1818.
• B) $1623.
• C) $1802.
• D) $2754.

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than other competitors with the same quality.

Oil

A fossil fuel in liquid form, primarily used as a source of energy and as a base for petrochemicals, extracted from underground reservoirs.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy and heat.

Tariff

A tax imposed on imported goods and services to protect domestic industries or raise government revenue.