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    Microeconomics Study Set 26
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    Exam 26: Extension F: Review
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    If the Interest Rate Is 5 Percent, the Present Value
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If the Interest Rate Is 5 Percent, the Present Value

Question 18

Question 18

Multiple Choice

If the interest rate is 5 percent, the present value of $2,000 to be received two years from today is about


A) $2,010.
B) $1,814.
C) $1,905.
D) $1,980.

Correct Answer:

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