The Present Value of $30,000 to Be Received in Two

question 8

Multiple Choice

The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

• A) $23,916
• B) $37,632
• C) $23,700
• D) $30,000

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Definitions:

Characteristics

Features or qualities that distinguish one thing from another, used to describe unique aspects of individuals, objects, or concepts.

Short-run Supply Curve

A graphical representation showing the quantity of goods and services that producers are willing to sell at each possible price level, over a short time period where some production factors are fixed.

Long-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, considering all possible changes in inputs and technology.

Elastic

Elastic refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price, with high elasticity meaning significant responsiveness.