The Present Value of $2,000 One Year in the Future

question 114

Multiple Choice

The present value of $2,000 one year in the future at a 6.5 percent interest rate is approximately

• A)$4,045
• B)$1,300.
• C)$2,130.
• D)$1,878.

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Definitions:

Vertical Relationships

Connections between companies or entities at different stages of the production process, often involving suppliers and buyers.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers.

Profits

Earnings that exceed the costs and expenses incurred in operating a business.

Double Marginalization

A situation where both the manufacturer and retailer markup prices, leading to higher final prices for consumers.