Even with an Interest Rate of 0

question 103

True/False

Even with an interest rate of 0.0%,the future value of a 5-year $800 annual annuity will be greater than the present value of the same annuity.

---

Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product.

Dispose of Cars

The method of disposing of unwanted or obsolete vehicles by means such as recycling, selling, or scrapping.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Square Feet

A unit of area measurement in the Imperial and U.S. customary measurement systems, commonly used to express the size of a space.