Which of the Following Is the Equivalent of $300 Received

question 102

Multiple Choice

Which of the following is the equivalent of $300 received today?

• A)$795.99 to be received 20 years in the future assuming a 5 percent annual interest rate.
• B)$100 to be received two years from now and $200 three years from now.
• C)$300 compounded at 10 percent for one year.
• D)All of these are the equivalent of $300 received today.

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Definitions:

Workers

Individuals engaged in any form of labor, whether employed by organizations, self-employed, or working as freelancers, contributing to the production of goods and services.

Producer Surplus

The difference between the amount a producer is paid for a good compared to the minimum amount they would be willing to accept for it, a measure of producer welfare.

Price

The sum of money needed to buy a product, service, or commodity.

Quantity

The amount or number of a material or immaterial good considered as a unit or in discrete amounts.