The Net Present Value of $100, Delivered One Year from Now

question 27

Multiple Choice

The net present value of $100, delivered one year from now, would

• A) fall if the rate of interest increased.
• B) fall if the rate of interest decreased.
• C) rise if the rate of interest increased.
• D) not change if the interest rate changed.

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Definitions:

Percent

A unit of measure expressing a number as a fraction of 100, commonly used to describe proportions and rates.

Mates

Refers to individuals paired for reproductive purposes or colloquially used to refer to friends or companions.

Socioeconomic Class

A division of society based on social and economic status.

Waist-To-Hip Ratio

A measurement used to assess the distribution of body fat, calculated by dividing the circumference of one’s waist by the circumference of one’s hips, with implications for health and attractiveness.