Suppose You Will Receive $500 in One Year and the Risk-Free

question 62

Multiple Choice

Suppose you will receive $500 in one year and the risk-free interest rate (r_f) is 5%.The equivalent value today is closest to:

• A)$475
• B)$476
• C)$500
• D)$525

---

Definitions:

Societal Goals

Collective ideals or objectives that a society aims to achieve for the welfare, progress, and unity of its members.

First-born Child

The child born first in the birth order of a family, often attributed with certain personality traits and responsibilities.

Center Of Attention

The focal point or person that captures and holds the interest or concern of others in a group or situation.

Life Outside The Home

Aspects of an individual's life and activities that occur outside their domestic environment, including work, social interactions, and public engagements.