Which of the Following Has a Present Value of $100

question 407

Multiple Choice

Which of the following has a present value of $100?

• A)$110 in two years when the interest rate is 5 percent
• B)$112.36 in two years when the interest rate is 6 percent
• C)$117.49 in two years when the interest rate is 7 percent
• D)None of the above are correct to the nearest cent.

---

Definitions:

Psychobabble

The use of jargon from psychology and psychotherapy in a manner that is understood to be pretentious or meaningless.

Empirical Evidence

Information obtained through observation, experimentation, or experience, as opposed to theory or belief, used as the basis for knowledge.

Choice Overload

The phenomenon where having too many options can lead to difficulty in making decisions and potential dissatisfaction with the chosen option.

Rumination

The repetitive, often compulsive, focus on the symptoms of one's distress, and its possible causes and consequences, rather than on solutions.