What Is the Present Value of $100 Paid in 5

question 34

Multiple Choice

What is the present value of $100 paid in 5 years if the interest rate is 5%?

• A)$78.35
• B)$95.24
• C)$105.00
• D)$127.63

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Definitions:

Calzones

A type of Italian folded pizza, filled with various ingredients such as cheese, meats, and vegetables, then baked.

Inferior Goods

Goods whose demand decreases when consumers' incomes increase, opposite to normal goods.

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Income

The financial gain earned or received over a period of time, typically through employment, investments, or business operations.