If the Present Value of $110 to Be Received One

question 85

Multiple Choice

If the present value of $110 to be received one year from now is $100, what will $100 be worth two years from now?

• A) $110
• B) $121
• C) $100
• D) can't say since we don't know what the interest rate is

---

Definitions:

Regulatory Commission

A governmental body responsible for enforcing specific regulations and overseeing the practices within certain industries.

Economic Profit

A financial gain that exceeds both the explicit and implicit costs associated with business operations.

Natural Monopolist

A firm that can supply the entire market at a lower cost than any combination of two or more smaller firms, often due to economies of scale.

Maximum Price

A price ceiling set by authorities to prevent prices from going above a certain level, often to make goods affordable.