What Is the Present Value of a $600 Payment in One

question 22

Multiple Choice

What is the present value of a $600 payment in one year when the discount rate is 8%?

• A) $498.61
• B) $525.87
• C) $555.56
• D) $575.09

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Definitions:

Market Equilibrium

A state in which market supply and demand are balanced at a certain price level, leading to economic stability in which the quantity supplied equals the quantity demanded.

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a price decrease.

Excess Demand

A situation in which the demand for a product or service surpasses its supply in a market, often leading to price increases.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.