Suppose You Will Receive $800 in Two Years

question 184

Multiple Choice

Suppose you will receive $800 in two years.If the interest rate is 5 percent,then the present value of this future payment is

• A)$725.62.It would be higher if the interest rate were higher.
• B)$727.28.It would be higher if the interest rate were higher.
• C)$725.62.It would be lower if the interest rate were higher.
• D)$727.28.It would be lower if the interest rate were higher.

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