The Table Above Shows the Interest Rates Available from Investing

question 85

Multiple Choice

The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. If an investment offers a risk-free cash flow of $100,000 in two years' time, what is the present value (PV) of that cash flow?

• A)$76,518
• B)$114,777
• C)$133,906
• D)$95,647

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Definitions:

Everyday Low Pricing

A pricing strategy where a retailer consistently offers products at low prices rather than relying on sales or discounts, aimed at attracting price-sensitive customers.

Markdowns

Reductions from the original or retail price of goods, usually to stimulate sales or clear out inventory.

Retail Pricing Strategy

Approaches and tactics a retailer uses to set the prices of its products or services to maximize profitability.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.