You Have Been Promised a Payment of $30,000 in the Future.In

question 126

Multiple Choice

You have been promised a payment of $30,000 in the future.In which case is the present value of this payment highest?

• A) You receive the payment 3 years from now and the interest rate is 8 percent.
• B) You receive the payment 3 years from now and the interest rate is 6 percent.
• C) You receive the payment 2 years from now and the interest rate is 8 percent.
• D) You receive the payment 2 years from now and the interest rate is 6 percent.

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Definitions:

Future Generations

Refers to the people who will live in the future, highlighting the importance of sustainable practices to not compromise their needs.

Sustainability

The use of resources to enable society to satisfy current needs, without compromising the ability of future generations to meet their needs.

Resources

Assets, materials, or other items of value that are available to an individual or organization to achieve goals or carry out activities.

Zero Emissions

Occur when carbon or polluting emissions are reduced and/or offset so that there is no net addition of emissions that are harmful to the environment or climate, usually by the emitting source.