What Is the Present Value of a Payment of $100

question 187

Multiple Choice

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?

• A)$95.50
• B)$95.24
• C)$95.00
• D)None of the above are correct to the nearest cent.

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Definitions:

Inventory

The total amount of goods and materials held by a business, intended for sale or used in production.

Inventory Investment

The purchase of goods and materials for future sale or use, regarded as a form of investment by a company.

GDP

Gross Domestic Product, which measures the total value of all goods and services produced within a country’s borders in a specific time period.

Partnership

A lawful business structure operated by two or more people who jointly manage and divide profits.