If the Interest Rate Is 6%,which of These Investments Would

question 31

Multiple Choice

If the interest rate is 6%,which of these investments would you prefer?

• A) A single payment of $500 in year 3.
• B) A payment of $40 a year for 20 years starting in one year's time.
• C) A perpetuity of $30 a year starting in one year's time.
• D) A payment of $342.17 today

---

Definitions:

Cultural Difference

Variation in the practices, values, and goals shared by groups of people due to their geographical, social, or ethnic backgrounds.

Displaying Feelings

The act of expressing one's emotions openly through body language, facial expressions, or verbal communication.

Sneer

A facial expression that can signify disdain or contempt, often characterized by the corner of the lips being turned up or down.

Baring One's Teeth

A physical expression, often indicating aggression or preparation for attack, by showing one's teeth.