The Present Value of $100 to Be Received One Year

question 144

Multiple Choice

The present value of $100 to be received one year from now

• A) is $100.
• B) is $110.
• C) is $90.
• D) cannot be determined without knowing the interest rate.

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Definitions:

Problem-solving Ability

The capacity to find solutions for difficult or complex issues, often involving analytical or creative thinking.

Retrieval Ability

The capacity to recall or retrieve information from memory when needed.

Primary Mental Abilities Test

A test designed to measure different types of mental abilities, such as verbal comprehension, reasoning, and numerical ability.

Louis Thurstone

Was an American psychologist who contributed significantly to psychometrics and is known for his development of the Thurstone scale for attitude measurement.