If the Interest Rate Is 10%, the Present Value of $100

question 1

Multiple Choice

If the interest rate is 10%, the present value of $100 to be paid in two years is

• A)$100/1.1.
• B)$100/1.1².
• C)$80.
• D)$121.

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Definitions:

Rapport

A harmonious relationship in which people or groups concerned understand each other's feelings or ideas and communicate well.

Mutual Confidence

The shared belief in the reliability, truth, ability, or strength of each other within a relationship.

Mutual "Liking"

A reciprocal feeling of fondness or affection shared between individuals.

Violence Triad

A theory suggesting that three behaviors during childhood (animal cruelty, obsession with fire setting, and persistent bedwetting) are predictive of violent tendencies later in life.