Which of the Following Is Correct If the Interest Rate

question 15

Multiple Choice

Which of the following is correct if the interest rate is 6 percent?

• A)$215 to be received a year from today has a present value of over $200;$420 a year from now has a present value over $400.
• B)$215 to be received a year from today has a present value of over $200;$420 a year from now has a present value under $400.
• C)$215 to be received a year from today has a present value of under $200;$420 a year from now has a present value over $400.
• D)$215 to be received a year from today has a present value of under $200;$420 a year from now has a present value under $400.

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Definitions:

Agents And Principals

A relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Appointment Of An Agent

The act of designating a person or entity to act on behalf of another, granting them authority to make decisions or perform tasks.

Voidable Contracts

are agreements that may appear legally binding, but can be declared invalid by one of the parties due to factors like misrepresentation, coercion, or lack of capacity.

Duty Of Obedience

The requirement for organizational leaders to act in accordance with the organization's goals, policies, and legal obligations.