Which of the Following Has a Present Value of $100

question 136

Multiple Choice

Which of the following has a present value of $100?

• A)$109.12 in two years when the interest rate is 4 percent
• B)$113.98 in two years when the interest rate is 6 percent
• C)$116.64 in two years when the interest rate is 8 percent
• D)$123.17 in two years when the interest rate is 10 percent

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Definitions:

Perfectly Inelastic

describes a situation where the demand for a product does not change in response to changes in its price.

Unitary

Describes a system of government where there is no division of powers between regional governments and a central government, or a singular entity in a given context.

Elasticity of Supply

A measure of how the quantity supplied of a good responds to a change in the price of that good, defined as the percentage change in quantity supplied divided by the percentage change in price.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.