Suppose the Interest Rate Is 8 Percent

question 178

Multiple Choice

Suppose the interest rate is 8 percent.Consider three payment options:
1) $200 today.
2) $220 one year from today.
3) $240 two years from today.
Which of the following is correct?

• A)Option 1 has the highest present value and Option 2 has the lowest.
• B)Option 2 has the highest present value and Option 3 has the lowest.
• C)Option 3 has the highest present value and Option 1 has the lowest.
• D)None of the above is correct.

---

Definitions:

Antonakis

Likely refers to John Antonakis, a leadership researcher known for his work on leadership and organizational behavior.

Charisma

A personal quality of individual leaders that inspires and attracts followers, often leading them to give strong support.

Divinely Inspired

Guided or influenced by a divine force or spiritual presence.

Situational Variables

External factors that influence the outcome of a specific situation without being directly related to the individual's inherent attributes.