If the Interest Rate Is 20 Percent, $100 to Be

question 256

Multiple Choice

If the interest rate is 20 percent, $100 to be received four years from today has a present value of approximately

• A) $48.
• B) $69.
• C) $80.
• D) $100.

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Definitions:

Fast-Food

Quick service restaurants serving food that is prepared and served rapidly.

Consumer Surplus

The benefit obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay.

Optimal Consumption

refers to the situation in which a consumer allocates their income in a way that maximizes their overall satisfaction or utility, given their preferences and the prices of goods and services.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.