Suppose You Will Receive $800 in Two Years

question 184

Multiple Choice

Suppose you will receive $800 in two years.If the interest rate is 5 percent,then the present value of this future payment is

• A)$725.62.It would be higher if the interest rate were higher.
• B)$727.28.It would be higher if the interest rate were higher.
• C)$725.62.It would be lower if the interest rate were higher.
• D)$727.28.It would be lower if the interest rate were higher.

---

Definitions:

Consistent Practice

The regular and repeated exercise of an activity or skill to improve proficiency and achieve mastery over time.

Family Enterprise

A business that is owned and managed by multiple family members, typically for more than one generation.

Entrepreneurship

The act of establishing a company or companies, while accepting monetary risks with the aspiration of earning profits.

Act On Them

To take action or respond based on specific ideas, feelings, or information.