A Business Promises to Pay the Investor of $6000 Today

question 17

Multiple Choice

A business promises to pay the investor of $6000 today for a payment of $1500 in one year's time, $3000 in two years' time, and $3000 in three years' time. What is the present value of this business opportunity if the interest rate is 6% per year?

• A) $603.94
• B) $301.97
• C) $724.73
• D) $966.30

Understand the concept and significance of personal and social territories.

Comprehend the principles of equilibrium theory in predicting personal space needs.

Identify the characteristics of third places and their role in social interaction.

Recognize the influence of cultural background on personal space preferences.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of two goods or services that can be produced with available resources and technology.

Units of Guns

A quantification measure commonly used to denote the production or stockpile of firearms or, by extension, military capacities.

Units of Butter

A measure of quantity for butter, which can be used in economic examples to illustrate the concept of trade-offs or opportunity costs.

Opportunity Cost

The expense incurred by not selecting the superior alternative available when a different choice is made.