John Says That the Future Value of $250 Saved for One

question 48

Multiple Choice

John says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. George says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.

• A)John and George are both correct.
• B)John and George are both incorrect.
• C)Only John is correct.
• D)Only George is correct.

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Definitions:

Fitness

pertains to an individual's physical state, in terms of strength, stamina, and overall health, often achieved through exercise and proper nutrition.

Second half

Commonly denotes the latter portion of a defined period of time, such as the last two quarters of a fiscal year or the final 30 minutes of a football game.

Age stereotypes

Refer to the generalized beliefs or perceptions about people based on their age, often leading to discrimination or biased behavior.

Retirement

The process of leaving one's job or career and ceasing to work, typically upon reaching a certain age or due to health reasons.