If I Will Receive a Payment of $121 Two Years

question 51

Multiple Choice

If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the payment is:

• A)$90.
• B)$100.00.00.
• C)$110.10.
• D)$146.41.

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Definitions:

Chi-squared Distribution

A statistical tool used to compare observed data with data we would expect to obtain according to a specific hypothesis.

Sample

A subset of individuals or units from a larger population used to estimate characteristics of the whole population.

Population

The entire pool from which a sample is drawn for statistical analysis. It can include people, objects, or events depending on the study.

Variance

Measures the dispersion of a set of data points around their mean; mathematically, it is the average of the squared differences from the Mean.