What Is the Present Value of $100 One Year from Now

question 2

Multiple Choice

What is the present value of $100 one year from now at an interest rate of 5%?

• A) $5
• B) $95.24
• C) $100
• D) $105

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Definitions:

Wave-wound

A method of winding used in electrical machinery where coils are connected in series to form a continuous wave-like pattern, optimizing the use of conductor material.

Field Excitation

The process of applying an external current to the field winding of a generator or motor to produce the necessary magnetic field for operation.

Input Torque

The torque applied to a system or component, often measured to understand the mechanical power required to operate a device or machinery.

Armature Excitation

The process of applying voltage to the armature winding of a generator or motor, which induces magnetic fields and enables motion or power generation.