Which of the Following Has a Present Value of $100

question 136

Multiple Choice

Which of the following has a present value of $100?

• A)$109.12 in two years when the interest rate is 4 percent
• B)$113.98 in two years when the interest rate is 6 percent
• C)$116.64 in two years when the interest rate is 8 percent
• D)$123.17 in two years when the interest rate is 10 percent

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Definitions:

Third Person

An individual who is not directly involved in a contract or legal agreement but may be affected by it.

Common Law Doctrine

A legal principle developed through past court decisions rather than through legislative statutes or written laws.

Unconscionability

A condition where a contract or a clause within the contract is so unjust or overwhelmingly one-sided in favor of the party with the power that it is deemed voidable.

Consumer Situations

Scenarios involving the interaction or transaction between individuals purchasing goods or services for personal use and the businesses providing them.