With a Nominal Interest Rate of 5%,the Present Discounted Value

question 42

Multiple Choice

With a nominal interest rate of 5%,the present discounted value of $100 to be received in one year is

• A)$90.91.
• B)$95.23.
• C)$181.82.
• D)$190.00.
• E) $220.00.

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Definitions:

Preferences

Denotes individual likings or choices toward certain options over others, often influenced by personal values, experiences, or societal trends.

Minimized

reduced to the smallest possible amount or degree.

Routinization

The process of making an action or series of actions standard and routine within an organization, thereby increasing efficiency.

Creativity Undermine

Occurs when conditions or attitudes negatively impact the ability or willingness of individuals or teams to generate innovative ideas or solutions.