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.

---

Definitions:

Productivity

The efficiency of production, measured as the amount of output produced per unit of input used.

Little Capital

A term referring to businesses or investments that require a relatively small amount of money to start or maintain.

Infant Mortality Rate

A statistical measure representing the number of deaths of infants under one year old per 1,000 live births in a given year.

Developed Countries

Nations with advanced economies, high standards of living, and well-established infrastructure, often characterized by high levels of industrialization.