Which of the Following Has the Lowest Present Value

question 40

Multiple Choice

Which of the following has the lowest present value?

• A) $1000 received in 3 years if the current interest rate is 4%
• B) $1500 received in 5 years if the current interest rate is 6%
• C) $2000 received in 6 years if the current interest rate is 11%
• D) $3000 received in 10 years if the current interest rate is 13%

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Definitions:

Individual Rights

Entail the basic liberties and rights guaranteed to individuals, often within a legal or societal context, ensuring personal freedoms.

Peer Interaction

The process of engaging and communicating with individuals of the same age or status, which contributes to social development.

Moral Development

The process through which individuals learn to distinguish right from wrong, and to develop beliefs, values, and actions that are consistent with those distinctions.

Perspective

A particular attitude towards or way of regarding something; a point of view.