A Judge Requires Harry to Make a Payment to Sally

question 105

Multiple Choice

A judge requires Harry to make a payment to Sally.The judge says that Harry can pay her either $10,000 today or $12,000 two years from today.Of the following interest rates,which is the highest one at which Harry would be better off paying the money today?

• A)4 percent
• B)6 percent
• C)9 percent
• D)11 percent

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Definitions:

Alexander Kerensky

A key political leader during the Russian Provisional Government of 1917, who played a significant role in the events leading up to the Bolshevik Revolution.

Provisional Government

A provisional government is a temporary government established to manage a political transition, generally in the cases of new nations or after the collapse of the previous governing regime.

Vladimir Lenin

A Russian revolutionary leader and communist theorist who was the founder of the Russian Communist Party, leader of the Bolshevik Revolution in 1917, and the architect and first head of the Soviet state.

April Theses

A series of directives issued by Lenin in April 1917, which called for the overthrow of the provisional government and the establishment of a proletarian government.