What Is the Present Value of $100 Two Years from Now

question 174

Multiple Choice

What is the present value of $100 two years from now at an interest rate of 6%?

• A) $6
• B) $89
• C) $94.34
• D) $106

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Definitions:

Major League Baseball

The professional baseball organization in North America, comprising 30 teams divided into the National League and American League.

Maximize Revenue

Strategies and actions taken by businesses to increase the total income generated from sales, services, or other business activities.

Substitution Effect

A concept in economics where an increase in the price of a good leads to consumers replacing it with a cheaper alternative.

Consumer Behavior

The examination of how individuals, groups, or organizations choose, acquire, consume, and discard products, services, experiences, or ideas in order to fulfill their needs, and how these activities affect both the consumer and the broader community.