At an Interest Rate of 5 Percent, the Present Value

question 141

Multiple Choice

At an interest rate of 5 percent, the present value of $1,000 to be received two years from today is

• A) less than $875.
• B) between $875 and $925.
• C) between $925 and $975.
• D) more than $975.

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Definitions:

Imports

Goods or services brought into one country from another for sale or use.

Barter

The practice of exchanging products and services for other products and services rather than for money.

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The total sales revenue generated from a company's products or services across different countries around the world.