Assuming the Interest Rate Is 6 Percent, Which of the Following

question 23

Multiple Choice

Assuming the interest rate is 6 percent, which of the following has the greatest present value?

• A)$300 paid in two years
• B)$150 paid in one year plus $140 paid in two years
• C)$100 paid today plus $100 paid in one year plus $100 paid in two years
• D)$285 today

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Definitions:

World War II

A global conflict that took place from 1939 to 1945, involving most of the world's nations and culminating in significant geopolitical changes.

Technological Change

Technological change refers to the overall process of innovation, invention, and diffusion of technology or processes, enhancing productivity or altering societal lifestyles.

Income Inequality

The unequal distribution of income among individuals or households within a given population or economy.

Labor Demand

The total amount of workers that employers within an economy or industry are willing and able to hire at a given wage rate.