John Says That the Future Value of $250 Saved for One

question 48

Multiple Choice

John says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. George says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.

• A)John and George are both correct.
• B)John and George are both incorrect.
• C)Only John is correct.
• D)Only George is correct.

---

Definitions:

Low-Fat Foods

Foods designed to have lower amounts of fats, particularly saturated fats and cholesterol, which are associated with heart disease.

Breast Cancer

A type of cancer that develops from breast tissue, one of the most common cancers affecting women worldwide.

Hope And Optimism

Refers to the state of having a positive outlook and expectation for the future, which can significantly influence psychological well-being.

Demand Side

Refers to the consumers or buyers in an economy, focusing on their behavior and how their decisions affect market demand for goods and services.