Multiple Choice
You have a choice among three options.Option 1: receive $900 immediately.Option 2: receive $1,200 one year from now.Option 3: receive $2,000 five years from now.The interest rate is 15% per year.Rank these three options from highest present value to lowest present value.
A) Option 1; Option 2; Option 3
B) Option 3; Option 2; Option 1
C) Option 2; Option 3; Option 1
D) Option 3; Option 1; Option 2
Correct Answer:
Verified
Correct Answer:
Verified
Q38: According to the rule of 70,if the
Q92: Brittany wants to have about $500,000 when
Q93: Suppose that fundamental analysis shows a stock
Q94: George knows that he has about $95
Q95: As the interest rate increases,the present value
Q99: John says that the future value of
Q102: Which of the following defines an annuity?<br>A)For
Q111: Write the rule of 70. Suppose that
Q163: List three different ways that a risk-averse
Q183: At an annual interest rate of 10