Suppose the Interest Rate Is 5 Percent

question 202

Multiple Choice

Suppose the interest rate is 5 percent. Consider three payment options:
1) $500 today.
2) $520 one year from today.
3) $550 two years from today.
Which of the following is correct?

• A) 1 has the lowest present value and 3 has the highest.
• B) 2 has the lowest present value and 1 has the highest.
• C) 3 has the lowest present value and 2 has the highest.
• D) None of the above is correct.

Grasp the concept of hierarchical organization and its benefit for memory.

Explain the significance of imagery and associations in memory improvement.

Understand various types of compensation and employee benefits.

Identify the principles and techniques of employee and job management.

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Definitions:

Credible

Being believable or worthy of trust, often based on a proven track record or evidence.

Penetration Pricing

A pricing strategy where a product is initially offered at a lower price to attract customers and gain market share.

Market Acceptance

The degree to which a new product or service is embraced and used by consumers in a target market.

Initial Price

The first set price of a product or service at the start of its market launch, before any discounts or adjustments.