If the Interest Rate Is 5 Percent,what Is the Present

question 81

Multiple Choice

If the interest rate is 5 percent,what is the present value of a payment of $500 to be made one year from today?

• A)$457.14
• B)$475.00
• C)$480.77
• D)None of the above are correct to the nearest penny.

---

Definitions:

Refined

Improved or made more elegant or sophisticated through careful modification.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied, typically upward sloping.

Rare Earth Metals

A group of 17 chemically similar elements critical in many high-technology devices like smartphones, wind turbines, electric vehicles, and various defense applications.

Electronic Components

Fundamental discrete devices or parts in an electronic system used to affect electrons or their associated fields.