At an Interest Rate of 3%, What Is the Present

question 28

Multiple Choice

At an interest rate of 3%, what is the present value of $1000 to be received five years from now?

• A)$863
• B)$1667
• C)$1159
• D)$850

Analyze the reasons behind the housing crisis and the role of mortgage market changes.

Explain the functions and importance of legal reserve requirements in monetary policy.

Discuss the significance of the lender of last resort function of the Federal Reserve.

Understand the concept and application of net present value in capital budgeting.

---

Definitions:

Sinoatrial Node

The heart's natural pacemaker, located in the right atrium, responsible for initiating the heartbeat.

Wave of Depolarization

A rapid change in electrical charge across a cell membrane, leading to nerve impulse transmission or muscle contraction.

QRS Complex

A portion of an electrocardiogram (EKG) representing the depolarization of the heart's ventricles, preceding the ventricular contraction.

Ventricles

Ventricles are the two lower chambers of the heart that receive blood from the atria and pump it out to the lungs and the rest of the body.