In Calculating the Present Value of $1,000 to Be Received

question 14

Multiple Choice

In calculating the present value of $1,000 to be received 5 years from today, the discount factor has been calculated to be .7008. What is the apparent interest rate?

• A) 5.43%
• B) 7.37%
• C) 8.00%
• D)9.50%

---

Definitions:

Local Markets

Physical or virtual places within a defined geographical area where goods and services are bought and sold.

Hard Power

The use of military or economic force to influence the behavior or interests of other political bodies.

Economic Force

A factor that affects the direction and magnitude of economic growth or decline, such as consumer behavior, government policy, or technological innovation.

Military Force

The armed forces of a country, used for defense or in combat situations.