Assuming the Interest Rate Is 6 Percent, Which of the Following

question 23

Multiple Choice

Assuming the interest rate is 6 percent, which of the following has the greatest present value?

• A)$300 paid in two years
• B)$150 paid in one year plus $140 paid in two years
• C)$100 paid today plus $100 paid in one year plus $100 paid in two years
• D)$285 today

---

Definitions:

American Football League

A professional American football league that merged with the National Football League (NFL) in 1970, now known as the AFC within the NFL.

Monopoly Status

Monopoly Status describes a situation where a single company or entity exclusively controls a particular market or industry, lacking significant competition.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Output

The total amount of goods and services produced by an individual, firm, industry, or economy within a certain period.