What Is the Value in Year 3 of a $10,000

question 83

Multiple Choice

What is the value in year 3 of a $10,000 cash flow made in year 20 if interest rates are 5 percent?

• A) $4,362.97
• B) $4,491.27
• C) $5,374.11
• D) $5,572.19

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Definitions:

Stable Economy

An economic condition characterized by predictability, low inflation, and minimal unemployment, indicating a healthy economic environment.

Say's Law

An economic theory proposing that supply creates its own demand, meaning production inherently creates the means to purchase other goods.

Keynesian Theory

Keynesian Theory is an economic theory stating that government intervention through fiscal and monetary policy is necessary to manage aggregate demand and address economic cycles.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and monetary policies.