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

---

Definitions:

Compassion

A feeling of deep sympathy and sorrow for another who is struck by misfortune, accompanied by a desire to alleviate the suffering.

Quality Circles

Small groups of employees who voluntarily meet regularly to identify, analyze, and solve work-related problems, aiming to improve organizational performance.

Team Approaches

Strategies or methodologies focused on enhancing the effectiveness and efficiency of a team, emphasizing collaboration, communication, and aligned goals.

Coordination

The act or process of organizing people or groups so that they work together properly and efficiently.