If the One-Year Discount Factor Is Equal to 0

question 8

Multiple Choice

If the one-year discount factor is equal to 0.90909, the interest must be equal to

• A)9.5%.
• B)5.0%.
• C)10.0%.
• D)9.1%.

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Definitions:

Effective

Successfully achieving a desired or intended result through efficiency and impact.

Justified

Text that is aligned evenly along both the left and right margins.

Lines of Text

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Flush

To cleanse or clear out by a rapid flow of water, or to be in level alignment with a surface.