A Promise of a $100 Payment to Be Received One

question 10

Multiple Choice

A promise of a $100 payment to be received one year from today is:

• A) more valuable than receiving the payment today.
• B) less valuable than receiving the payment two years from now.
• C) equally valuable as a payment received today if the interest rate is zero.
• D) not enough information is provided to answer the question.

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Definitions:

Clarity

The quality of being clear, precise, and easy to understand in communication or expression.

Emphasis

Special importance, value, or prominence given to something in speech or writing.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

Organizing

The process of arranging or structuring elements in a systematic way to achieve a specific goal.