Given an Annual Interest Rate of 3%,the Present Value of a Future

question 39

Multiple Choice

Given an annual interest rate of 3%,the present value of a future payment of $2 080 to be paid in 1 year is:

• A) $1 904.76.
• B) $2 000.00.
• C) $2 019.42.
• D) $2 080.00.

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Definitions:

Gross Domestic Product

The total value of all goods and services produced within a country over a specific time period, reflecting the overall economic health.

Gross World Product

The market value of all final goods and services produced in the world during a given period, usually a year.

Net National Product

The total value of goods produced and services provided by a country during a year, minus depreciation. It reflects the total economic output that is not consumed through wear and tear.

National Income

The total value of all income earned within a country, including wages, rents, interest, and profits.