Using the Tables Above,what Would Be the Present Value of $15,000

question 161

Multiple Choice

Using the tables above,what would be the present value of $15,000 to be received at the end of each of the next 2 years,assuming an earnings rate of 6%?

• A) $27,495
• B) $26,040
• C) $30,000
• D) $25,350

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Definitions:

Fewer Resources

A situation or condition where there is a reduced availability of inputs or factors of production such as land, labor, and capital.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision or selection.

Comparative Advantage

The capacity of an entity to generate a product or service with a smaller opportunity cost than others.