You Have a Contract with Someone Who Has Agreed to Pay

question 22

Multiple Choice

You have a contract with someone who has agreed to pay you $20,000 in four years.She offers to pay you now instead.For which of the following interest rates and payments would you take the money today?.

• A)8 percent,$15,000
• B)7 percent,$16,000
• C)6 percent,$17,000
• D)All of the above are correct.

---

Definitions:

Price Capital

The valuation of capital assets based on their cost or market value, contributing to the overall price level of investments.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given period.

Labor

The effort by humans to produce goods or services in the economy.

Resource Demand Curve

A graphical representation showing the relationship between the price of a resource and the quantity of that resource demanded by firms.