What Is the Present Value of a Payment of $100

question 7

Multiple Choice

What is the present value of a payment of $100 to be made one year from today if the interest rate is 6 percent?

• A)$105.26
• B)$105.00
• C)$97.24
• D)$94.34

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Definitions:

Unintended Consequence

A result or effect that was not anticipated or intended, often occurring as a side effect of an action or decision.

Civil War

A war between groups within the same country or state, characterized by internal conflict often over issues of governance, territory, or societal structures, with significant examples including the American Civil War.

Class Conflict

The tensions and struggles that arise between different social classes due to disparities in wealth, power, and interests, often highlighted in Marxist theory.

Emancipation Proclamation

A presidential proclamation and executive order issued by President Abraham Lincoln on January 1, 1863, that declared the freedom of all enslaved people in Confederate-held territory.