Given an Interest Rate of 3 Percent, the Present Value

question 13

Multiple Choice

Given an interest rate of 3 percent, the present value of a future payment of $2,080 to be paid in one year is:

• A) $1,904.76
• B) $2,000.00
• C) $2,019.42
• D) $2,080.00

---

Definitions:

Trade Restrictions

Measures implemented by governments to control the amount and type of goods and services that can be traded across borders, such as tariffs, quotas, and embargoes.

Policy Changes

Modifications or adjustments to existing rules, regulations, or laws enacted by a governing body.

Agricultural Adjustment Act

A U.S. federal law of the New Deal era designed to boost agricultural prices by reducing surpluses.

Agricultural Prices

The amount of money required to purchase agricultural products, which can fluctuate based on factors like supply, demand, weather conditions, and market trends.