Alice Says That the Present Value of $700 to Be

question 341

Multiple Choice

Alice says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the present value of $700 to be received two years from today if the interest rate is 3 percent. Beth says that $700 saved for one year at 6 percent interest has a smaller future value than $700 saved for two years at 3 percent interest.

• A)Both Alice and Beth are correct.
• B)Both Alice and Beth are incorrect.
• C)Only Alice is correct.
• D)Only Beth is correct.

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Definitions:

Matter

Matter is a substance that occupies physical space and possesses mass, including solids, liquids, gases, and plasma.

Frontal

Pertaining to the forehead or the front part of the brain associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Anterior and Posterior

These terms are used to describe the front (anterior) and back (posterior) parts of the body in anatomical language.

Fragile X Syndrome

A genetic disorder characterized by intellectual disability, behavioral challenges, and various physical features, caused by mutations in the FMR1 gene.