At Which Interest Rate Is the Present Value of $80

question 97

Multiple Choice

At which interest rate is the present value of $80.25 one year from today equal to $75 today?

• A)4 percent
• B)5 percent
• C)6 percent
• D)7 percent

---

Definitions:

Unique

Being the only one of its kind; unlike anything else.

Adaptation

The evolutionary process by which organisms become better suited to their environment, leading to changes in traits over generations.

Hollow Bones

Bones that are light yet strong, characteristic of birds, aiding in flight by reducing overall weight.

Bird

Endothermic reptile that has feathers and wings, is often adapted for flight, and lays hard-shelled eggs.