With an Interest Rate of 10 Percent,the Present Value of a Security

question 58

Multiple Choice

With an interest rate of 10 percent,the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately

• A) $1,000.
• B) $2,000.
• C) $2,560.
• D) $3,000.

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Definitions:

Structures of Authority

The organized framework or system by which power and control are exercised in a society, organization, or group.

Obedient

Characterized by or displaying compliance with authority or rules, often following commands or instructions without question.

Disciplined

Having or demonstrating a controlled form of behavior or way of working, often characterized by adherence to a set of rules or a strict regimen.

Structures of Authority

The systems and frameworks within which power is distributed and exercised in an organization or society.