What Is the Present Value of a Payment of $1,000

question 188

Multiple Choice

What is the present value of a payment of $1,000 two years from now if the interest rate is 6%?

• A)$2,000/1.06
• B)$1000/(1.06)²
• C)$1000/(1 + 0.06²)
• D)None of the above are correct.

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Definitions:

Ethical Decisions

Choices made based on principles of right and wrong in a professional or personal context, often considering the broader impacts on society and stakeholders.

Open Opinion

A perspective or viewpoint that is publicly expressed without restriction, often encouraged for the purpose of fostering transparent communication or brainstorming.

Public Agreement

A consensus or concurrence of opinion among the general public or within a specific group of people.

Ethical Intensity

Ethical Intensity refers to the perceived importance or significance of an ethical issue, determined by its potential outcomes and the degree of impact on stakeholders.