If the Annual Interest Rate Remains Unchanged Over the Next

question 170

Multiple Choice

If the annual interest rate remains unchanged over the next two years, and the present value of $120 to be received one year from now is $100, what will $100 be worth two years from now?

• A) $120
• B) $140
• C) $144
• D) Uncertain. We need to know the interest rate.

---

Definitions:

Writ of Certiorari

An order issued by a higher court to a lower court to send up the records of a case for review, often used by the U.S. Supreme Court to select cases.

Original Jurisdiction

The authority of a court to hear a case first, before any other court has reviewed the matter.

Supreme Court Justices

The judges appointed to the highest court in the land, responsible for interpreting the Constitution and reviewing significant legal issues.

U.S. Supreme Court

The highest court in the United States, which has the ultimate judicial authority to interpret federal laws including the Constitution.