The Present Value of a $110 Payment in One Year

question 205

Multiple Choice

The present value of a $110 payment in one year, given an annual 10% interest rate, is:

• A) $10.
• B) $11.
• C) $100.
• D) $110.

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Definitions:

Unilateral Contract

An agreement where one party makes a promise, but the other side does not reciprocate with a promise but with an action.

Internet Communication

The exchange of information or messages between users through the internet, utilizing various platforms and technologies.

Gratuitous Promise

A promise for which no consideration is given; not legally binding unless put in a deed or supported by some form of consideration.

Electronic Contracts

Legal agreements formed, signed, or accepted electronically, without the use of paper or wet ink.