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.

---

Definitions:

Crushed

Describes material that has been broken down into smaller pieces by pressure.

International 24-Hour Clock

A timekeeping system that extends from 00:00 to 23:59, reducing ambiguity by using a full 24-hour cycle, commonly used in military, aviation, and global communications.

Scored Tablet

A tablet manufactured with a groove or line, allowing it to be easily split into halves or quarters for dosing flexibility.

Unscored Tablet

A solid dosage form of medication without any indents or marks, which could make it harder to split or break evenly.