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.

---

Definitions:

Stimulus

Any event or situation that evokes a response or reaction from an organism or system.

Intrinsic Motivation

The drive to engage in an activity for its own sake, because it is interesting and satisfying in itself, not for some separate outcome.

Creativity at Work

The ability to generate innovative and useful ideas and solutions within a professional context.

Direction of Effort

The orientation or focus of an individual's or group's work and energies towards achieving a particular goal or task.