The Present Value of $2,000 One Year in the Future

question 114

Multiple Choice

The present value of $2,000 one year in the future at a 6.5 percent interest rate is approximately

• A)$4,045
• B)$1,300.
• C)$2,130.
• D)$1,878.

---

Definitions:

Price Increase

A general rise in the prices of goods and services over a period of time, decreasing purchasing power.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Apartment Rents

The payment made periodically by a tenant to a landlord for the use and occupancy of an apartment.

Chewing Gum

Chewing gum is a type of flavored and chewable confectionery designed to be chewed without being swallowed.