Suppose Interest Rate I Is 3% Per Year

question 79

Multiple Choice

Suppose interest rate i is 3% per year. What is the present value of $1,400 to be received in four years?

• A) $1,243.88
• B) $1,244.60
• C) $1,358.00
• D) $1,575.71

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Definitions:

Jacobo Arbenz Guzmán

A Guatemalan military officer and politician who served as the President of Guatemala from 1951 to 1954 and was overthrown by a CIA-backed coup.

Soviet Union

A socialist state that existed from 1922 to 1991, comprised of multiple subnational Soviet republics, with a government based on a one-party system led by the Communist Party.

Military Aid

The provision by a country of military resources, such as weapons, equipment, training, and sometimes troops, to another country to help bolster the latter's defense capabilities.

CIA

The Central Intelligence Agency, a civilian foreign intelligence service of the federal government of the United States tasked with gathering, processing, and analyzing national security information.