If the Interest Rate Is 8 Percent, $54 Next Year

question 42

Multiple Choice

If the interest rate is 8 percent, $54 next year is worth __________ today.

• A)$62
• B)$50.68
• C)$50
• D)$4.32

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Definitions:

Reasonable Care

The level of carefulness and attention that a reasonably wise and practical individual would apply under comparable conditions.

Landlord

The owner of a property who leases it to a tenant under a rental agreement, responsible for maintaining the property and adhering to the lease terms.

Tenants

Tenants are individuals who occupy land or property rented from a landlord.

Common Areas

Spaces within a building or property that are available for use by all occupants or members, such as lobbies, corridors, and recreational facilities.