What Is the Present Value of a Payment of $200

question 135

Multiple Choice

What is the present value of a payment of $200 to be made one year from today if the interest rate is 10 percent?

• A)$180
• B)$181.82
• C)$220
• D)$222.22

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Definitions:

Money Supply

The entirety of financial assets at a specific point in time within an economy, including the total of cash, coins, and balances in savings and checking accounts.

Interest Rate

The fee a lender imposes on a borrower for utilizing assets, denoted as a portion of the primary sum.

Aggregate Demand

represents the total demand for all goods and services in an economy at a given time and price level.

Short-Run Aggregate Supply

Represents the total output of goods and services produced in an economy at different price levels over a short period, during which some factors of production are fixed.