You Receive $500 Today Which You Plan to Save for Two

question 193

Multiple Choice

You receive $500 today which you plan to save for two years.Also,in two years you will be given another $500.If the interest rate is 5 percent,what is the present value of the payment of $500 today and the $500 in two years?

• A)$500(1.05)² + $500/(1.05)²
• B)$500(1.05)² + $500
• C)$500 + $500/(1.05)²
• D)$500 + $500

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Definitions:

Resonance

A phenomenon in which a system's natural frequency of oscillation is excited by another oscillating system, leading to a significant increase in amplitude at certain frequencies.

Power Factor

A ratio indicating the efficiency with which an electrical system converts electrical power into useful work output, particularly in AC circuits.

RLC Parallel Circuit

An electrical circuit consisting of resistors (R), inductors (L), and capacitors (C) all connected in parallel, which can filter or resonate at certain frequencies.

Applied Voltage

Applied voltage is the electrical potential difference intentionally established across a component or circuit to induce current flow.