If the Present Value of $100 Received One Year from Now

question 118

Multiple Choice

If the present value of $100 received one year from now is $80,what is the annual interest rate?

• A)8 percent
• B)10 percent
• C)20 percent
• D)25 percent
• E)50 percent

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Definitions:

Styrene

An organic compound with the chemical formula C8H8, a monomer used in the production of polystyrene plastics and synthetic rubber.

π Electrons

Electrons present in the pi bonds of a molecule which contribute to the molecule's chemical properties.

Aromatic

Refers to a class of compounds that contain a benzene ring or a similar structure with delocalized electrons that follow Huckel's rule.

AntiAromatic

Compounds that have conjugated pi electron systems with 4n pi electrons, which destabilize the molecule, making it less stable than if the pi electrons were localized.