Multiple Choice
Alex says that $400 saved for one year at 4 percent interest has a smaller future value than $400 saved for two years at 2 percent interest.Brian says that the present value of $400 one year from today if the interest rate is 4 percent is more than the present value of $400 two years from today if the interest rate is 2 percent.
A) Alex and Brian are both correct.
B) Alex and Brian are both incorrect.
C) Only Alex is correct.
D) Only Brian is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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