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

question 474

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) $5001.05)2 + $500/1.05)2
• B) $5001.05)2 + $500
• C) $500 + $500/1.05)2
• D) $500 + $500

Explore the implications of resale price maintenance on market outcomes.

Examine how cooperative behavior among competitors affects market structure and consumer welfare.

Assess the conditions under which tying and bundling practices are used as strategic business decisions.

Understand the potential benefits and drawbacks of repeated gameplay in game theory.

---

Definitions:

Hormone Present

Refers to the existence or concentration of hormones in the body, which are chemical messengers that regulate physiological activities.

Atrophy

The decrease in size or wasting away of a body part or tissue, often due to disease, injury, or lack of use.

Posterior Pituitary

The back part of the pituitary gland that releases hormones, such as oxytocin and vasopressin, directly into the bloodstream.

Anterior Pituitary

The front part of the pituitary gland that produces and releases hormones into the bloodstream which regulate various physiological processes.