If the Interest Rate Were 10 Percent, the Net Present

question 30

Multiple Choice

If the interest rate were 10 percent, the net present value of $100 to be received one year from now would be

• A) $90.
• B) $90.91.
• C) $100.
• D) $110.

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Definitions:

Proximity

The factor of living close by is known to play an important role in the early stages of forming a friendship.

Self-Disclose

The act of revealing personal, private, or sensitive information about oneself to others, typically to build intimacy or trust.

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Trust

The confidence in the reliability, truth, ability, or strength of someone or something, essential for the functioning of societies and personal relationships.