What Is the Present Value of $1 Million Payable in 90

question 53

Multiple Choice

What is the present value of $1 million payable in 90 days at 8.00% per annum simple interest?

• A) $835 240.27
• B) $974 372.66
• C) $980 655.56
• D) $1 002 747.25

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Definitions:

Tacit Collusion

A situation where firms in the market indirectly coordinate actions by understanding common interests without explicit agreement, often leading to higher prices or less competition.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service; this cost can vary with the level of production.

OPEC

The Organization of the Petroleum Exporting Countries, a group consisting of 13 of the world's major oil-exporting nations.

Perfectly Competitive Market

A market in which all participants are price-takers.