Suppose That You Have $100 Today and Expect to Receive

question 120

Multiple Choice

Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. If you save all your money, how much money will you have one year from today?

• A)$100
• B)$125
• C)$200
• D)$225

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Definitions:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, and stroke.

Weight Gain

The increase in body weight over a period of time, which can result from a variety of factors including diet, exercise, and underlying health conditions.

Early Adulthood

A stage of human development that occurs roughly between the ages of 18 to 25, marked by increased independence and responsibility.

Binge Drinking

Heavy episodic drinking; consuming five or more alcoholic beverages in one sitting for men and four drinks in one sitting for women.