What Is the Present Value of $104

question 347

Multiple Choice

What is the present value of $104.25 that you could receive one year from now, given that the rate of interest is 4.25 percent?

• A) $108.50
• B) $0.00
• C) $4.25
• D) $100.00

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Definitions:

Direct Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other, or a decrease in one is associated with a decrease in the other.

Negative Correlation

An interdependence between two variables marked by the rise of one and the decline of the other.

Scatterplot

A type of graph that shows the relationship between two continuous variables by plotting their values as coordinates on a two-dimensional plane.

Weak Relationship

Refers to a situation where the correlation between two variables is low, indicating that they have little association with each other.