You Expect to Receive $5,000 in 25 Years

question 153

Multiple Choice

You expect to receive $5,000 in 25 years.How much is it worth today if the discount rate is 5.5%?

• A) $1,067.95
• B) $1,124.16
• C) $1,183.33
• D) $1,245.61
• E) $1,311.17

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Definitions:

Built-In Stabilizers

Automatic fiscal mechanisms, such as progressive taxation and welfare payments, that help to moderate the fluctuations of an economy's output without additional legislative action.

Income Tax Collections

The process of collecting taxes imposed on individuals or entities based on their income or profits by the government.

National Income

A measure of the total value of all goods and services produced by a country over a specific time period, often adjusted for inflation and excluding net income from abroad.

Budget Deficit

A situation where a government's expenditures exceed its revenues, resulting in the need to borrow money to cover the shortfall.