Using an Interest Rate of 5%, Which Figure Has the Smallest

question 114

Multiple Choice

Using an interest rate of 5%, which figure has the smallest present value

• A)$5000.
• B)$5050 to be received two years from now.
• C)$5075 to be received three years from now.
• D)$5500 to be received ten years from now.

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Definitions:

War Production Board

The War Production Board was a U.S. government agency during World War II that coordinated the production of war materials and the distribution of resources among industries.

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The surprise military strike by the Imperial Japanese Navy Air Service upon the United States against the naval base at Pearl Harbor in Honolulu, Hawaii, on December 7, 1941, which led the United States to enter World War II.