Laura Says That the Present Value of $700 to Be

question 59

Multiple Choice

Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the present value of $700 to be received two years from today if the interest rate is 3 percent.Cassie says that $700 saved for one year at 6 percent interest has a smaller future value than $700 saved for two years at 3 percent interest.

• A)Both Laura and Cassie are correct.
• B)Both Laura and Cassie are incorrect.
• C)Only Laura is correct.
• D)Only Cassie is correct.

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Definitions:

Positive Note

Ending a communication or situation on an affirmative, optimistic, or constructive manner, emphasizing positive elements.

Delivering Criticism

The act of providing constructive feedback or expressing disapproval aimed at encouraging improvement.

Risks And Benefits

The potential negative and positive outcomes associated with a decision or action.

Communicating

The act of conveying information or expressing ideas and emotions through speech, writing, gestures, or other methods.