With an Interest Rate of 5 Percent,the Present Value of $100

question 97

Multiple Choice

With an interest rate of 5 percent,the present value of $100 received one year from now is approximately

• A) $100.
• B) $105.
• C) $95.
• D) $90.

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Definitions:

Agent

An individual or entity authorized to act on behalf of another (the principal) in legal or business matters.

Manifestations

Manifestations refer to displays or expressions of an act, event, or condition, revealing the presence or existence of something.

Reasonable Understanding

A standard determining what a typical person would comprehend in a given set of circumstances.

Apparent Authority

The seeming authority that a principal has granted to an agent, leading a third party to reasonably believe the agent has such power.