What Is the Present Value of $575 in a One

question 160

Multiple Choice

What is the present value of $575 in a one year if the current rate of interest is 4 percent?

• A)$410.71
• B)$552.88
• C)$598
• D)$805

Calculate the expected rate of return and its significance in making investment choices.

Comprehend the economic rationale behind selecting projects based on their expected rates of return relative to interest rates.

Understand how changes in market interest rates influence investment decisions by firms.

Comprehend the criterion for firms to undertake investment projects based on the present value of the income stream versus the cost.

---

Definitions:

Visual Acuity

The clarity or sharpness of vision, measured as the ability to discern letters or numbers at a standardized distance.

Sharpness

The clarity or distinction of an image or sound, or the acuteness of an edge or point.

Vision

The ability to see, interpreted by the brain's processing of signals sent from the eyes.

Mydriatic

Relating to the dilation of the pupil, often due to medication or specific health conditions.