At Which Interest Rate Is the Present Value of $260

question 145

Multiple Choice

At which interest rate is the present value of $260.10 two years from today equal to $250 today?

• A)2 percent
• B)3 percent
• C)4 percent
• D)5 percent

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Definitions:

Attention

The first step in the prospect’s mental steps. From the moment a salesperson begins to talk, he or she should try to quickly capture and maintain the prospect’s attention.

Conviction

A strong belief or opinion that is held with confidence and determination.

Desire

The third step in the prospect’s mental buying process. It is created when prospects express a wish or wanting for a product.

Opinion

A personal view, attitude, or appraisal formed in the mind about a particular matter.