Which Is the Smallest If the Interest Rate Is 8

question 39

Multiple Choice

Which is the smallest if the interest rate is 8 percent?

• A)$100 to be received after five years
• B)the present value of an annuity of $100 for five years
• C)$100 received in the present
• D)$100 received for two years

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the central peak, and the probabilities of extreme variations taper off equally on both sides.

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Bell-Shaped Pattern

A graphical representation of data that resembles the shape of a bell, typically illustrating a normal distribution in statistical analyses.

Stanford-Binet

An intelligence test that assesses cognitive abilities and IQ, originally developed by Alfred Binet and later revised at Stanford University.