Assuming the Interest Rate Is 6 Percent, Which of the Following

question 23

Multiple Choice

Assuming the interest rate is 6 percent, which of the following has the greatest present value?

• A)$300 paid in two years
• B)$150 paid in one year plus $140 paid in two years
• C)$100 paid today plus $100 paid in one year plus $100 paid in two years
• D)$285 today

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Definitions:

Global Aid Programs

International efforts and initiatives aimed at providing financial, technical, or humanitarian assistance to countries and communities in need.

Government Stability

The degree to which a government is consistent in its policies, effective in its governance, and able to maintain order.

Standard Of Living

The degree of prosperity, convenience, physical possessions, and essential needs accessible to a specific social economic group or region.

Inward-Oriented Policies

Economic strategies focusing on protecting domestic industries from foreign competition through tariffs and import quotas.