Which of the Following Is the Equivalent of $300 Received

question 108

Multiple Choice

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

• A) Seven hundred ninety-five dollars ninety-nine cents to be received 20 years in the future assuming a 5 percent annual interest rate.
• B) Hundred dollars to be received two years from now and $200 three years from now.
• C) Three hundred dollars compounded at 10 percent for one year.
• D) All of these choices are correct.

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Definitions:

Central Planners

Individuals or groups responsible for coordinating economic activities and decisions in a centrally planned economy.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices are determined in a free price system.

Production Goals

Targets set by a company regarding the quantity and quality of products to be produced within a certain timeframe.

Limited Resources

The finite availability of resources such as time, money, and materials, which constrains production, consumption, and allocation decisions.