Which of the Following Has the Highest Present Value

question 8

Multiple Choice

Which of the following has the highest 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 12%

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Definitions:

Windings

Coils of wire that are used to create magnetic fields when electric current passes through them, found in generators, motors, and transformers.

Voltages

The potential difference in charge between two points in an electrical field, measured in volts.

Motors

Devices that convert electrical energy into mechanical energy.

Squirrel-Cage Rotor

A type of rotor in an induction motor, characterized by its cylindrical shape with conductive bars running the length of the cylinder and connected at both ends by conductive rings, creating a cage-like appearance.