Calculate the Discounted Value of $2,875 to Be Received from a Bank

question 13

Multiple Choice

Calculate the discounted value of $2,875 to be received from a bank a year later at an interest of 15 percent per annum.

• A)$2,625
• B)$2,075
• C)$2,015
• D)$2,500

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Definitions:

Export

The selling of goods or services produced in one country to buyers in another country.

Autarky Price

The autarky price is the price of a good in a country that is completely self-sufficient and does not engage in international trade for that good.

Total Surplus

The sum of consumer surplus and producer surplus in a market, a measure of the overall economic benefit to society.

Autarky

An economic system or condition of self-sufficiency where a country or entity does not engage in international trade, but relies on its own resources.