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

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Definitions:

I/O Modules

I/O modules are hardware components used in industrial control systems to interact with the system's inputs and outputs, facilitating data exchange between the control system and external devices.

Power Interruption

A disruption in the flow of electrical power, which can be temporary or permanent, affecting the operation of electronic devices and systems.

RAM

Stands for Random Access Memory, a type of computer memory that can be accessed randomly; that is, any byte of memory can be accessed without touching the preceding bytes.

PLC Programming Device

A tool or software used for writing, debugging, and testing the program code for a Programmable Logic Controller.