At Which Interest Rate Is the Present Value of $95

question 210

Multiple Choice

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

• A)4 percent
• B)5 percent
• C)6 percent
• D)7 percent

---

Definitions:

Upstream Price Discrimination

The practice of varying prices for goods or services at an earlier stage in the supply chain based on different buyers' willingness to pay.

Arbitrage

The practice of buying and selling the same asset in different markets to profit from price differences.

Vertical Integration

A company's expansion into different stages of production or distribution within the same industry, controlling more of its supply chain.

Upstream Price Discrimination

Differential pricing strategy employed before the product reaches the final consumer, often involving wholesalers or distributors.