What Is the Present Value of $100 Three Years from Now

question 353

Multiple Choice

What is the present value of $100 three years from now at an interest rate of 6%?

• A) $83.96
• B) $82
• C) $94.34
• D) $119.10

Differentiate between bias and unbiased resources and the importance of critical evaluation of sources.

Understand the distinction between primary and secondary sources and how to identify quality information in research.

Learn the importance of citation accuracy and the methodology of recording literature research for transparency and reproducibility.

Understand the definitions and principles of exchange rate mechanisms, including spot and forward rates.

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Definitions:

Excess Reserves

Bank reserves that exceed the minimum reserve requirements set by central banking authorities.

Open Market

A scenario where economic transactions are conducted in a free manner without restrictions, allowing for the buying and selling of goods and services.

Government Bonds

Debt securities issued by a government to finance its expenditures, considered low-risk investments.

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage of the principal.