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:

Respondeat Superior

A legal doctrine that holds an employer liable for the actions of an employee when the actions occur within the scope of employment.

Employer's Liability

The legal responsibility of employers to compensate employees for injuries or damages incurred in the course of employment.

Respondeat Superior

A legal principle that assigns legal liability to an employer or principal for the misconduct of an employee or agent when those actions are carried out in the course of their employment or representation.

Vicarious Liability

Legal responsibility assigned to an individual or entity for the actions of another, based on a particular relationship, such as employer-employee.