If the Annual Interest Rate Is 6%,the Present Value of $100

question 49

Multiple Choice

If the annual interest rate is 6%,the present value of $100 paid 3 years from now is

• A)$15.15.
• B)$40.00.
• C)$56.45.
• D)$83.96.
• E)$94.34.

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Definitions:

Goods

Physical items that satisfy human wants or needs and can be transferred or sold.

Price-Consumption Curve

Curve tracing the utility-maximizing combinations of two goods as the price of one changes.

Utility

A measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Engel Curve

Curve relating the quantity of a good consumed to income.