What Is the Present Value of $100 Three Years from Now

question 390

Multiple Choice

What is the present value of $100 three years from now at an interest rate of 5%?

• A) $85
• B) $115.76
• C) $90.70
• D) $86.38

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Definitions:

Import

Refers to the acquisition of goods or services from a foreign country for domestic use.

Export

The process of sending goods or services to another country for sale.

World Price

The international market price of a commodity or product, determined by global supply and demand forces.

Free Trade

The policy of allowing unrestricted import and export of goods between countries, without tariffs, quotas, or other restrictions.