What Is the Present Value of a Payment of $100

question 70

Multiple Choice

What is the present value of a payment of $100 to be made one year from today if the interest rate is 5 percent?

• A)$105.26
• B)$105.00
• C)$95.24
• D)$95.00

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Definitions:

Equilibrium Price

The price at which the quantity demanded of a good equals the quantity supplied.

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period of time.

Shortage Occurs

A market condition where the demand for a product exceeds its supply at a given price, leading to a situation where not all consumer demand can be met.

Motorcycle Producers

Companies or entities that manufacture motorcycles, focusing on aspects such as design, production, and marketing.