Suppose the Interest Rate Is 8 Percent

question 101

Multiple Choice

Suppose the interest rate is 8 percent.Consider three payment options.
1) $300 today.
2) $330 one year from today.
3) $360 two years from today.
Which of the following is correct?

• A)1 has the highest present value and 2 has the lowest.
• B)2 has the highest present value and 3 has the lowest.
• C)3 has the highest present value and 1 has the lowest.
• D)None of the above is correct.

---

Definitions:

Retaliate

To take action against someone in response to their actions or wrongdoing, often with the intent to cause harm or exact revenge.

Delegating Style

A management approach where tasks and responsibilities are distributed among team members, empowering them while maintaining accountability.

Situational Leadership Model

A leadership theory that proposes the effectiveness of a leadership style is dependent on the task readiness level of the individuals being led.

Low Task Behavior

Leadership behavior focused less on the work to be done and more on the interpersonal relationships among team members.