Roy Is Going to Receive a Payment of $5,000 One

question 98

Multiple Choice

Roy is going to receive a payment of $5,000 one year from today. He earns an average of 6% on his investments. What is the present value of this payment?

• A) $4,717
• B) $4,821
• C) $5,000
• D) $5,300

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Definitions:

Substitutes for Salt

Alternative ingredients or products used to replicate the taste or preservative qualities of salt in cooking and food preparation.

Consumer's Budget

The financial constraint or limit on the amount of goods and services a consumer is able to purchase, based on their income and the prices of goods and services.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected by changes in price.

Price Elasticity of Demand

A measure of how responsive the quantity demanded of a good is to a change in its price, often used to gauge the relative change in demand as a result of price fluctuations.