At Which Interest Rate Is the Present Value of $95

question 210

Multiple Choice

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

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

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Definitions:

Secure

The state of being free from danger or threat, or the assurance that information, resources, or possessions are protected against loss, damage, or unauthorized access.

Avoidant

Relating to behavior characterized by the desire to avoid particular situations or stimuli, often due to fear or anxiety.

Accommodation

In psychology, the process of adjusting one's cognitive structures to integrate new information or experiences.

Assimilation

The cognitive process of incorporating new information into existing cognitive structures, frameworks, or understanding.