Suppose the Interest Rate Is 5 Percent

question 3

Multiple Choice

Suppose the interest rate is 5 percent.Which of the following payment options has the highest present value today?

• A)$550 one year from today.
• B)$580 two years from today.
• C)$600 three years from today.
• D)$615 four years from today.

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Definitions:

Poly-A Tail

A stretch of adenine nucleotides added to the 3' end of mRNA molecules in eukaryotic cells, aiding in stability and export from the nucleus.

mRNA

Messenger RNA, a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein product.

Transcription

The process by which the information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

Codon

Three-base sequence in messenger RNA that during translation directs the addition of a particular amino acid into a protein or directs termination of the process.