What Is the Value in Year 7 of a $700

question 92

Multiple Choice

What is the value in year 7 of a $700 cash flow made in year 3 when the interest rates are 10 percent?

• A) $478.11
• B) $980.00
• C) $1,024.87
• D) $1,364.10

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Definitions:

Bowed Outward

Describes a production possibilities frontier that curves away from the origin, indicating increasing opportunity costs for producing goods.

Production Possibilities Frontier

A graphical representation that shows the maximum combination of goods and services that can be produced with a fixed amount of resources.

Rate Of Trade-off

The rate at which one factor must be decreased in order to increase another factor, commonly used in the context of opportunity cost.

Resources

Assets or inputs used in the production of goods and services, such as labor, capital, and natural resources.