A Bank Lends Some Money to a Business

question 31

Multiple Choice

A bank lends some money to a business.The business will pay the bank a single payment of $180,000 in ten years' time.How much greater is the present value (PV) of this payment if the interest rate is 9% rather than 8%?

• A)$7341
• B)$35,892
• C)$76,033
• D)$83,374

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Definitions:

Trade Restrictions

Measures implemented by governments to control the amount of trade across its borders by limiting imports, exports, or both through mechanisms such as tariffs, quotas, and bans.

Labor Productivity

A measure of economic performance that calculates the efficiency of labor in producing goods and services.

Determinants Of Productivity

Factors affecting the efficiency of factor inputs in producing output, including technological advances, education, and infrastructure.

Height And Productivity

A concept examining the relationship between an individual's physical height and their productivity and economic output.